STALLED BILL

Senators threaten to derail budget over Sh39bn county grants

The counties have not received a penny of the Sh39.88 billion grant due to them in the current financial year due to a deadlock in Parliament

In Summary
  • Treasury CS Ukur Yatani’s planned unveiling of the 2022-23 budget next week could be in jeopardy after senators threatened to derail the passage of a crucial revenue bill.
  • The CS is scheduled to read the Sh3.31 trillion budget in Parliament on Thursday next week.
Treasury CS Ukur Yatani outside Pariament Building for Budget reading on June 11, 2020.
Treasury CS Ukur Yatani outside Pariament Building for Budget reading on June 11, 2020.
Image: FREDERICK OMONDI

Senators have vowed to disrupt the 2022-23 budget by Treasury CS Ukur Yatani over disbursement of counties cash.

The CS is scheduled to read the Sh3.31 trillion budget in Parliament next Thursday.

Senators have threatened to stall the approval of the Division of Revenue Bill due to delays to release Sh39.88 billion grants to counties.

The Bill must to be approved by Parliament before the CS reads the estimates. 

It spells out how the revenue raised nationally will be shared between the national and county governments.

Recently, the court ruled that the Bill must be approved by Parliament and signed into law by the President before the budget estimates are unveiled.

Last week,  Speaker of the National Assembly Justin Muturi held that unless the Division of Revenue Bill, 2022, is passed, “It will be unconstitutional for the CS to deliver the budget highlights.”

The counties have not received a penny of the Sh39.88 billion grant due to them in the current financial year due to a deadlock in Parliament over the County Governments Grants Bill, 2021.

The Senate and the National Assembly have failed to agree on the Bill, with the lawmakers now blaming Majority Leader Samuel Poghisio for introducing the Division of Revenue Bill before the counties get grants.

They have also accused the National Assembly for the grandstanding that has now threatened to stall many projects in the counties.

“If the Conditional Grants Bill is not approved by the National Assembly, I will be among the first people not to vote for The Division of Revenue Bill,” Narok senator Ledama Olekina said.

“I have got no business voting in the Third Reading for The Division of Revenue Bill if we will not be able to conclude on The Conditional Grants Bill.”

Senate’s Budget and Finance chairman Charles Kibiru, who is co-chairing the mediation team with his national assembly counterpart, sparked the debate on the floor.

“The budget preparation for the next Financial Year, 2022-23 is in high gear. It appears we have forgotten about these grants that ought to be funding implementation of various projects in the counties," he said.

“The Division of Revenue Bill, 2022 was tabled and the debate is continuing in this House, whereas we have not concluded on budget documentation for the current Financial Year.” 

The Kirinyaga Senator said the house was at a crossroads and implored  his colleagues whether to proceed with the Division of Revenue or consider the Grants Bill.

“Do we close our eyes and process the documents for the next Financial Year?"he asked.

"I ask Hon. Senators whether we should assume funds for the next financial year are more critical than unlocking the allocations for the current financial year.”

Kibiru said the  decision they made on this matter will set a precedent on how matters of budget would be prioritised in the future.

Kericho Senator Aaron Cheruiyot sought to know why the house leadership were in a hurry to have the Division of Revenue passed when the Grants Bill is still pending.

“What is the hurry for? There is no constitutional or legislative timeline that we are in breach of," he said.

"Therefore, we must stand firm as a House and ensure that we do the right thing.” 

Kitui Senator Enoch Wambua said it was difficult to understand how the Senate Majority Leader went ahead to table the Division of Revenue Bill to be debated.

“In fact, I want to go on record on this that there seems to be an unexplained hurry in pushing the Division of Revenue Bill,” he said.

(Edited by Francis Wadegu)

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