- Some 14 counties that have suffered decades of marginalisation are supposed to benefit from the fund.
- They are Turkana, Lamu, Mandera, Wajir, Marsabit, Samburu, West Pokot, Tana River, Narok, Kwale, Garissa, Kilifi, Taita Taveta and Isiolo.
Image: FILE
Members of Parliament have now changed tack in their bid to push the National Treasury release billions to Equalisation Fund for development of marginalised counties.
A Senate committee has asked the Treasury to draft a standalone bill to provide a legal framework for the release of the funds.
“The Treasury will prepare the bill in conformity with the regulations that were passed by the Senate in relation to equalisation fund,” Senate’s Budget and Finance Committee vice chairperson Maureen Mutinda said.
The Equalisation Fund Bill, if enacted, will compel the Treasury to release all the outstanding funds to implement the projects earmarked to develop marginalised counties.
Some 14 counties that have suffered decades of marginalisation are supposed to benefit from the fund.
They are Turkana, Lamu, Mandera, Wajir, Marsabit, Samburu, West Pokot, Tana River, Narok, Kwale, Garissa, Kilifi, Taita Taveta and Isiolo.
The fund is a creation of the 2010 to uplift the margined regions. It has a lifespan of 20 years from the year 2010 when the current constitution was promulgated.
Since the inception of the fund, between 2011-12 and 2022-23, a total of Sh55.28 billion is due to the fund.
Between financial years 2013-14 and 2022-23, Parliament has allocated Sh57.7 billion through various Division of Revenue Acts.
However, only Sh12.4 billion has been released for the 14 rated as margined in the first policy fashioned to guide the fund.
“The balance of Sh42.88 billion is yet to be appropriated to the beneficiary areas,” CRA chairperson Jane Kiringai said during a meeting with the senate committee.
However, the Sh12.4 billion appropriated has never been utilised on development due to lack of development committees at county level to identify and prioritise projects for implementation.
“The Equalisation Fund Advisory Board should fast track the establishment of committees in beneficiary counties and identification of projects,” Kiringai said.
In the current financial year, some Sh13.18 billion has been allocated to the fund through the County Governments Additional Allocations Bill, 2022.
But the committee has hived off the equalisation fund allocation from the Bill and, asked the Treasury to factor the allocation in stand-alone bill.
“This Bill allocates Sh13.48 billion, leaving a balance of Sh29.4 billion,” Kiringai said as she asked Parliament to fast track allocation of the balance to beneficiary counties to hasten development.
Appearing before the committee on Tuesday, CRA boss Kiringai sought to convince the Senate to adopt the second policy that increase the number of beneficiary counties from 14 to 34.
However, he faced resistance with the committee members fiercely objecting and accusing the CRA of being used by politicians to increase the number of the counties.
“I want to persuade you against increasing the number of counties. Do not accept to be used by politicians,” Kakamega Senator Boni Khalwale said.
But Kiringai said while the second policy increases the number of beneficiary counties, the funds will not cover the entire county but specific locations within the added counties.
“In some counties, we have locations that are extremely marginalised. Most of them are at the border. These are the areas we are targeting in the second policy, not entire counties,” Kiringai said.