Attorney General Kihara Kariuki has given the green light for counties to be facilitated with 50 per cent of their equitable share of revenue, subject to the National Assembly authorising the withdrawal.
"The advice that the authorisation of the National Assembly be obtained for the withdrawal of money from the Consolidated Fund using the County Allocation of Revenue Act is informed by the spirit of the Supreme Court's opinion that where reliance is to be placed on the previous year's division of Revenue Act, the National Assembly shall authorise withdrawals from the Consolidated Fund," he said on Friday.
The AG, however, said his office did not share the view that the Division of Revenue Act is the equivalent of an Appropriation Act for purposes of allowing withdrawals from the Consolidated Fund.
He continued, "In our considered opinion that the enabling legal framework is the County Allocation of Revenue Act."
He advised that the National Treasury should adopt the County allocation Allocation Act for 2019-20 pending approval of the revenue formula for 2020-21.
"Our opinion is that the county Allocation of Revenue Act for FY 2019-2020 may be used to transfer funds to the county governments pending the enactment of such an Act for the FY 202-2021," Kihara said in a letter to the Council of Governors Chairman Wycliffe Oparanya .
The CoGs had last week urged the National treasury to urgently release half of the County equitable share of revenue to ensure resumption of operations.
The council said the money is urgently needed to facilitate payment of salaries and health insurance for frontline workers and other County employees.
"Despite our call to Senate to expeditiously conclude this matter, we note with concern that the 12-member Senate committee is yet to build consensus on the formula. This has significantly affected service delivery by County Governments and delay in staff salaries," the statement signed Oparanya read.
The 12 member Senate committee formed to hammer out a deal on the controversial formula is yet to agree on the way forward.
The team was formed two weeks ago after a protracted standoff in the House on the formula that will determine how the counties share the Sh316.5 billion allocated to them in the 2020-21 budget.
The Senate has failed in nine sittings to approve the formula after lawmakers whose counties will lose money in the proposal rejected it.
