TAXMAN TAKEOVER

KRA to collect City Hall revenue in Sonko-Uhuru deal

"There is still a long way for the agreement to take effect in the next 21 days."

In Summary

•Lawyers had raised concerns on how the handover of the county functions to the Devolution ministry would be implemented.

•The gazette notice detailing the agreement shows that there is still a long way for the agreement to take effect in the next 21 days.

Nairobi Governor Mike Sonko during the signing of the agreement with the National Government on Tuesday, February 26, 2020. /COURTESY
Nairobi Governor Mike Sonko during the signing of the agreement with the National Government on Tuesday, February 26, 2020. /COURTESY

Kenya Revenue Authority will collect revenue for City Hall following Governor Mike Sonko's handover of county functions to the national government.

County government workers will also be seconded to the national government in the new arrangement.

The agreement signed by Sonko and Devolution CS Eugene Wamalwa on Tuesday in concurrence with President Uhuru Kenyatta will be subjected to public participation.

The County Public Service Board and the Public Service Commission are expected to formulate the necessary instruments to facilitate the deployment.

The county assembly will also formally receive the Deed of Transfer of Functions as per the Intergovernmental Relations Act for purposes of approval.

Lawyers had raised concerns on how the handover of the county functions to the Devolution ministry would be implemented.

But the gazette notice detailing the agreement shows that there is still a long way for the agreement to take effect in the next 21 days.

Sonko handed over health functions; transport services; planning and development services; county public works, utilities and ancillary services.

The governor has been out of office since last December following his arraignment over graft allegations stemming from a garbage collection tender.

Both the assembly and Parliament will also be receiving an annual report on the implementation of the deal which would be reviewed every two years.

 
 

In what may spell anxiety at City Hall, the national government is expected to conduct a capacity assessment – a review that might affect the management of finances.

“The National Government shall prescribe and establish an institutional framework for the execution of the transferred functions,” the agreement reads.

It also allows the national government to enter into a partnership agreements with other agencies in the implementation of the new dispensation.

City Hall would now be run using funds from either the Consolidated Fund or the County Revenue Fund or both.

However, the focus would be on how the county’s resources can be best utilized to help in execution of the transferred functions.

The national government will, in consultation with the county government, set the spending caps for the same.

This would mean that the national government will collect parking fees among other levies that transport operators are charged.

Uhuru’s administration took over the functions following concerns the city management had internal constraints which hindered it from operating effectively.

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