COUNTIES are at risk of losing
Sh50.5 billion meant for the implementation of donor-funded projects
as the senators and MPs clash over
a crucial Bill.
The two houses have differed over
the County Governments Additional Allocation Bill, 2025, with each
House originating and passing their
own version of the Bill.
The clash triggered a fresh standoff
that would further derail the unlocking of the billions to the counties.
The devolved units have waited
for nine months for Parliament to
approve the Bill to unlock the funds
after governors went to court to challenge the blocking of the counties
from benefitting from Sh10.5 billion
from Roads Maintenance Levy Fund.
“We have removed from the Bill any mention of that RMLF until
the courts have decided because
of sub judice. We have put it away
completely to remain with the other
schedules,” Kakamega Senator Boni
Khalwale said.
However, despite the two Houses
agreeing to exclude RMLF from the
Bill, they have still clashed on other
grants and donor funds that should
go to the counties.
The fresh standoff comes barely
three months to the end of the financial year, a move that would further
delay the unlocking of the funds.
“It is a very untidy situation and I
hope this never happens again. I don’t
recall ever moving a Bill for monies
to counties this late,” Majority leader
Aaron Cheruiyot said.
Last week, the National Assembly
passed their version of the Bill, giving
counties Sh25.31 billion in additional allocation — grants and loans from
donors and the national government.
However, the senators have also
approved their version, giving the
devolved units Sh50.5 billion in the
current financial.
Last week, governors threatened to
shut down the counties if the county
funds ‘deducted’ by the MPs were
not reinstated.
“From this deduction, county governments will lose Sh38.4 billion of
the additional allocations, of which
Sh24 billion are conditional grants,”
Council of Governors Vice-Chairperson Mutahi Kahiga said.
According to the Bill passed by the
National Assembly, the MPs gave the
counties Sh7.84 billion from the national government’s share of revenue
in 2024-25 FY.
The lawmakers also gave the devolved units Sh116.09 million from he proceeds of court fines.
The MPs also gave the devolved
units Sh17.36 billion from the proceeds of loans or grants from development partners for the 2024-25
financial year.
However, the senators gave the
counties Sh8.41 billion from the national government’s share of revenue
in 2024-25 FY.
The senators gave the counties
Sh116.09 million from the proceeds
of court and Sh42.01 billion from
proceeds of loans and loans from
development partners.
On Thursday, Senators took on the
MPs for undermining devolution by
grabbing funds meant to develop the
counties
