Only the Senate and the National Treasury - not the Controller of Budget - can avert the shutdown of counties on September 17.
CoB Margaret Nyakango said on Tuesday that her office is not in a position to authorise the release of money to counties as the funds have not been transferred from the Consolidated Fund to the County Revenue Fund.
“When the CoB approves withdrawals, it means funds have been transferred from the Consolidated Fund to the County Revenue Fund. I can only come in after the National Treasury has done their part,” Nyakango said.
This was in response to Majority Chief Whip Irungu Kang'ata who had cited regulation 134 of the Public Finance Management Act which mandates the Controller of Budget to authorise the release of the funds in the event of delays in passing the County Allocation of Revenue Act (CARA).
The PFM Act says if Parliament has not approved the County Allocation of Revenue Bill by the beginning of the financial year, the CoB may authorise withdrawals of up to 50 per cent from the Consolidated Fund based on the last CARA.
Nyakango explained that the Treasury must first release funds from the Consolidated Fund to County Revenue Fund, and then counties would make requisition to her office to release the money to their operational accounts.
“This has not happened. We are jumping one step and saying the next step can take place. Let everybody pull their weight. When this comes to my office, I will do the necessary.”
Council of Governors chairman Wycliffe Oparanya has said several activities and functions in devolved units have stopped because of the stalemate on revenue sharing formula at the Senate.
Senators Samson Cherargei (Nandi) and Ledama Olekina (Narok) and Nyeri Governor Mutahi Kahiga consequently appealed to the National Treasury to release half of the equitable funds since the stalemate on revenue sharing formula could persist.
Treasury CS Ukur Yatani, however, said he cannot release any money because his hands are tied.
“The advisory we received from the Attorney General was that the National Treasury cannot disburse funds to counties on basis of division of revenue alone. There has to be some agreement at the Senate,” he explained.
National Assembly Minority leader John Mbadi has since sponsored a motion to allow the National Treasury to release 50 per cent of equitable funds to county governments if there is a deadlock over the revenue sharing formula at the Senate.
Edited by R.Wamochie
