NEW DEMAND

CoG pushes for Sh381bn additional allocation to counties

If granted, the counties total allocation will stand at Sh751.45 billion

In Summary
  • The governors’ demand came in the wake of a recommendation by CRA to retain the allocation at Sh370 billion in 2021-22.
  •  CRA has cited tough economic times, worsened by the huge public debt.
Kericho Governor Paul Chepkwony, Narok Governor Samuel Ole Tunai, Embu Governor and Council of Governors chairperson Martin Wambora and Vihiga Governor Wilber Otichilo during a press briefing on October 18, 2021.
Kericho Governor Paul Chepkwony, Narok Governor Samuel Ole Tunai, Embu Governor and Council of Governors chairperson Martin Wambora and Vihiga Governor Wilber Otichilo during a press briefing on October 18, 2021.
Image: CHARLENE MALWA

The Council of Governors is now pushing for an additional allocation of Sh381.45 billion to counties.

If granted, the counties total allocation will be Sh751.45 billion, up from the current Sh370 billion.

“To safeguard devolution and ensure optimal implementation of the devolved functions by the county governments, the council proposes additional funding of Sh381.45 billion,” CoG chairman Martin Wambora said.

The council pegged the proposal on the Constitution of Kenya (Amendment) Bill, 2020 commonly known as the Building Bridges Initiative Bill.

The Bill proposes an allocation of 35 per cent of the total revenue by the Kenya Revenue Authority.

However, the Bill is currently pending in the Supreme Court after the High Court and the Court of Appeal slammed brakes on it, terming it illegal and unconstitutional.

“This Bill has a lot of goodwill as it was passed in both houses of Parliament and in 45 out of 47 county assemblies,” Wambora said.

Wambora addressed a press conference after chairing a full council meeting at Delta House headquarters on Monday.

The Embu governor was accompanied by governors Samuel ole Tunai (Narok), Hillary Barchok (Bomet), Paul Chepkwony (Kericho) and Wilber Ottichilo (Vihiga).

The governors’ demand came in the wake of a recommendation by the Commission on Revenue Allocation to retain the allocation at Sh370 billion in 2021-22.

The commission has cited tough economic times, worsened by the huge public debt, for the proposal to stagnate the allocation at Sh370 billion.

But county bosses have vehemently opposed the commission’s proposal, saying it’s not commensurate with projected revenue growth.

“Following an in-depth discussion on the issue, we wish to reiterate that we reject in totality the proposal by CRA that recommends non-increment of the county equitable share,” the CoG boss said.

The counties secured Sh370 billion in the current fiscal year, up from Sh316.5 billion after a protracted debate in the Senate, marked by stand-offs, arrests and allegations of intimidation over the third generation revenue sharing formula.

The senators had clashed over the formula, with those whose counties were losing revenue opposing it.

It took the intervention of President Uhuru Kenyatta to unlock the stalemate. He pledged to increase the allocation to ensure no county losses.

Meantime, county bosses want Roads Maintenance Levy Fund disbursed as grants and not as equitable share as is the case currently.

The funds are levies paid by motorists and disbursed to counties and other agencies to recarpet roads under their ambit.

The governors have also maintained that they will not appear before the Senate’s Roads and Transportation Committee to account for the roads levy funds.

They argued that like any other fund, fuel levy funds are audited by the Auditor General.

The oversight of such funds is the mandate of the Senate County Public Accounts and Investments Committee, he said.

“We therefore request that the Senate committee work together to ensure seamless coordination and implementation of their functions,” Wambora said.

The Roads committee, chaired by Kiambu Senator Kimani Wamatangi has summoned all the 47 counties to appear before it to explain the expenditure of the funds disbursed in the last two years.

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