Governors have taken their push for increased revenue allocation to the Senate as their war with Treasury and the Commission on Revenue Allocation intensifies.
The county chiefs want money for the devolved units to increase to Sh450 billion against Treasury’s and CRA's proposals of Sh391 billion and Sh398 billion.
Led by the Council of Governors chairperson Anne Waiguru, they urged the Senate Finance and Budget Committee to back their stand.
Their proposal for higher allocation is based on the projected revenue, inflation and growth of county staff.
The governors argued that the projected ordinary revenue is set to grow by 15 per cent, which is an absolute revenue increment of Sh376.9billion.
Waiguru asked the Mandera Senator Ali Roba-led committee that of Sh376.9 billion only Sh5.7 billion, which represents 5.6 per cent is added to the current Sh385 billion to the counties.
“The Council of Governors deems this disproportionate and inequitable. We are proposing an allocation of Sh450 billion,” she said.
The allocation should comprise of Sh439.5billion as equitable share and Sh10.5billion from the Roads Maintenance Levy Fund.
Waiguru was accompanied by governors, Johnson Sakaja (Nairobi), Anyang Nyong’o (Kisumu), Mutahi Kahiga (Nyeri), Cecil Mbarire (Embu) and Susan Kihika (Nakuru).
Others were Muthomi Njuki (Tharaka Nithi), Kiarie Badilisha (Nyandarua), Jonathan Bii (Uasin Gishu) and Issa Timamy (Lamu).
They said there are a number of projects and programmes that the counties are required to run but there is no budgetary allocation.
The governors said the Managed Equipment Service programme is coming to an end in March 2024 and counties are expected to provide resources for continuity of services in hospitals.
However, they argued that there is no corresponding allocation to the counties to enable them pay for the continuity.
The last allocation was Sh5.58billion.
“Counties are expected to take up the cost of MRI and CT scan machines from the next financial year from their own budgets,” Waiguru said.
The governors said projects such as the County Aggregation and Industrial Parks are being implemented jointly by the national and county governments on a 50:50 basis.
The devolved units are required to allocate Sh11.75billion from their budgets for CAIPs.
The county bosses said the new National Social Health Insurance Fund contribution rates are not capped which means counties will require additional allocation to cushion the expenditure.
Community Health Promoters programme being implemented by the two levels of government will also require additional Sh3.23 billion.
“The new Housing Levy deductions will further increase Counties expenditure. The new NSSF contribution rates will increase the counties expenditure hence the need to ensure additional resources are provided,” Waiguru said.
On annual salary increments, the county chiefs demanded an additional allocation to cater for the service.
The governors also demanded more funds for the transfer of Library and Museum functions.
“Finances for the pension and for operating and recurrent costs have not been transferred to the County Governments. This therefore implies that counties shall bear additional costs to operate these services,” she said.
“The weakening shilling against the dollar coupled up with the cost of inflation has led to increased prices of goods and services including the cost of building material and the critical pharmaceutical products that are the backbone of Counties delivering health services to the citizen.”
Sakaja said his administration oversees health service provision on 125 Health facilities yet he is given funds for only 20 facilities.
"However, the National Government which only takes care of three facilities is left with 80 per cent of the Health budget, he said.
“We are not asking for any additional funds. There is no logic why the National government should retain 80 per cent of the Health budget yet health is a devolved function.”
