ODM leader Raila Odinga could have a massive financial war chest in his battle against DP William Ruto after MPs allocated more than Sh1 billion to the Political Parties Fund.
Only President Uhuru Kenyatta's Jubilee and Raila's ODM parties qualify for funding from the exchequer under the current law.
The Budget and Appropriations Committee has allocated Sh1.06 billion as the political parties cash, handing ODM and Jubilee a windfall.
In the supplementary budget for the current financial year that is ending in June, only Sh60 million of the amount will go to the office of the Registrar of Political Parties for capacity-building costs.
Ruto will miss out on the cash after he led a mass walkout from the ruling party and formed his UDA outfit that is yet to be recognised in Parliament.
The allocation could be part of the Treasury's debt settlement plan, given that it owes Raila's party billions of shillings in unpaid arrears.
Kitui Central MP Makali Mulu, a member of the Budget committee, said the money would settle arrears owed to the political parties, more so ODM.
“This is an attempt to meet part of the arrears that were awarded by the court. This will be shared between ODM and Jubilee being the only parties that get the money,” Mulu told the Star.
The allocation would be a major financial boost to Raila who, for the first time, is believed to have assembled a properly resourced presidential campaign machine.
Raila is believed to be bankrolled by some of the country's wealthiest businessmen including tycoons from Uhuru's backyard under the Mt Kenya Foundation.
The injection from the political parties cash will fortify his financial muscle as he mounts his fifth stab at the presidency.
Registrar of Political Parties Anne Nderitu told the Star the sharing will be based on the initial Political Parties Act before it was amended recently to alter the sharing formula.
About 80 per cent of the fund is to be distributed proportionately, considering the total number of votes garnered by political parties.
Fifteen per cent is shared based on the number of candidates of the party from special interest groups. Five per cent will cover administrative costs.
"The provisions of the amended law would apply after the next general election," Nderitu said.
Most parties will lose out on the windfall because they are non-parliamentary and do not meet the legal criteria.
The United Democratic Alliance of Ruto, for instance, has only one elected MP in the National Assembly.
To qualify, the law requires parties to have at least three elected governors, 20 members of the National Assembly, three of the 47 senators and at least 40 members of county assemblies.
With President Kenyatta supporting Raila's presidential bid, much of the Jubilee allocation would go to activities related to the Azimio campaigns for the ODM boss.
Last November, ODM secretary general Edwin Sifuna said the exchequer owes ODM Sh8.5 billion.
The money includes arrears accrued from a 2019 High Court decision that awarded ODM Sh4.1 billion.
In 2016, ODM went to court seeking orders to compel the National Treasury to adhere to the law and allocate the Parties Fund at least 0.3 per cent of the national revenue.
The party won the case but Parliament had never allocated any money to settle the arrears as it is doing now.
In the current financial year 2021-22, political parties were entitled to receive Sh795.2 million.
Parliament allocated Sh826.6 million to the Political Parties Fund in the financial year 2020-21.
In the 2019-20 financial year, Jubilee got Sh564.2 million and ODM Sh363.5 million of the Sh871.2 million allocated for the year.
The political parties’ cash has been at the centre of a tussle because of the perception by other parties that it should not be the preserve of the two big outfits.
ODM has been on the receiving end in the fight amid claims for a share by its former Nasa affiliates, ANC and Ford Kenya.
The law applies retrospectively. Part of the money was from the previous allocation and the Registrar of Political Parties will determine
The fund was among the issues Wiper party cited during the recent negotiations between Raila and former Vice President Kalonzo Musyoka.
On Wednesday, Makueni MP Daniel Maanzo said the onus is on the Registrar of Political Parties to determine which provisions of the law to apply in sharing the fund.
“The law applies retrospectively. Part of the money was from the previous allocation and the Registrar of Political Parties will determine,” he said.
Parties, therefore, will have to produce any elected Members of Parliament — National Assembly and Senate —governors and MCAs to qualify for funding.
Also to be locked out would be parties that do not have representation of special interest groups in its top decision-making bodies.
The new law says parties would get 70 per cent of the fund based on the total number of votes secured.
Some 15 per cent is in respect of elected members of special interest groups, 10 per cent based on the number of representatives elected and five per cent for administration.
(Edited by V. Graham)
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