Governors have inched closer to reaching a solution over the protracted issue of additional funds to the counties.
This followed two meetings Thursday between the Council of Governors’ chair Anne Waiguru and Kiharu MP Ndindi Nyoro who chairs the National Assembly’s budget committee.
The matter is currently at the mediation stage in Parliament.
Waiguru also met Senate Finance Committee chair Ali Roba to deliberate on ways to ensure the funds get to the designated service delivery programs, also in the mediation committee.
“Finally, light at the end of the tunnel as we held a progressive meeting to unlock the sticky issue of additional and conditional grants funds flow to counties,” Waiguru announced.
Governors Stephen Sang (Nandi), Gladys Wanga (Homabay), James Orengo (Siaya), Simba Arati (Kisii), and Mutahi Kahiga also attended the meetings.
The county bosses recently called on the National Assembly and the Treasury to adopt the CoG proposal to ensure that counties are well-equipped to execute their mandate.
This is after they rejected a proposed vertical revenue-sharing formula for the next financial year by the Commission on Revenue Allocation (CRA) of Sh398.14 billion.
They have instead proposed that at a minimum, the county equitable share be capped at Sh450 billion.
The projected sharable revenue, according to the county bosses, amounts to Sh2,958.6 billion.
“This is the only proposal that is constitutionally viable,” Waiguru said in a statement to newsrooms on January 19 after convening for an extraordinary meeting.
According to Waiguru, this amount will factor in the adjustment for revenue growth, adjustment for inflation and the Road Maintenance Levy Fund projected allocation of Sh10.52 billion.
The current formula, the third since the inception of devolution in 2013, expires in the 2024-25 financial year, with the new basis expected to be approved by December this year.
The third basis has been in place since the 2020-21 fiscal year.
