A breakthrough appears to be in sight in the long-standing tussle between governors and Members of County Assemblies over financial control at the county level.
This is after President William Ruto threw his weight behind the MCAs' push for financial autonomy.
Speaking when he hosted a delegation from Kisumu County which included the ward representatives, Ruto announced that he will soon sign a law granting financial independence to the county assemblies.
“In the next couple of weeks, I will be signing into law legislation that will provide for the financial independence of county assemblies,” Ruto said amid cheers from the leaders.
The move, he stated, will ensure the county assemblies run their own budgets ending the long fight with the executive.
“This will enable them to manage their budgets and county affairs independently from the executive, just as is the case at the national level, ensuring that all arms of government work in harmony to serve the people,” he said.
The County Assemblies Forum (CAF) has already made amendments to the Intergovernmental Relations Bill, 2024.
Speaking during a consultative session with the National Assembly’s Departmental Committee on Regional Development last month, CAF advocated for county assemblies to manage their operational budgets, independent of county executives.
Represented by its Secretary General Mwaura Chege, CAF wants the budgetary allocations to come directly from the National Treasury, bypassing the Finance CEC.
“We cannot access our funds unless the executive allows it. Yet our budget is mostly operational, not for development projects. That is the autonomy we’re asking for,” Mwaura said.
The move, they argue, would free county assemblies from the financial grip of the executive and ensure smoother legislative operations.
CAF, the umbrella body representing all 47 county assemblies, has played a central role in promoting legislative standards and inter-county collaboration since its founding in 2013.
However, unlike the Council of Governors (CoG), CAF lacks legal recognition, a gap the new Bill aims to address.
Governors have, however, been opposed to the idea of county assemblies gaining financial independence from the county executive.
They argued that this would undermine the principle of separation of powers and potentially lead to inefficient management of public finance.
The renewed push by the MCAs through the National Assembly follows a similar one through the Senate.
In 2023, the Senate initiated a legislative proposal to the County Public Finance laws (amendment) Bill, 2023.
The bill laid out a mechanism through which the county assemblies can fund their activities independent of the county executive.
"The reliance on the county executives for finances occasions delays and other conflicts between the two arms of government. The financial autonomy of county assemblies is lacking as they rely on the whims and caprices of their respective county executives and as such cannot be said to be independent," Senator Kathuri Murungi who sponsored the Bill said.
The introduction of the Bill came as a major relief for the County Assemblies, which have complained that the current financial model undermines their mandate.
Currently, it is the Finance CEC who appoints signatories for the County assemblies' accounts.
This implies that county assemblies must get approval from the executive when placing requisitions for funds to the office of the Controller of Budget.
MCAs have argued that this model is an affront to the principle of separation of powers and undermines their oversight mandate.
They said they cannot be expected to effectively execute their mandate if they have to receive money from the same person that they are expected to oversight.
The current arrangement gives the governors and the finance CECs control over the funds disbursed to counties, and by extension, control over county assembly budgets.
MCAs have been forced to beg the executive to release their share of the equitable shareable revenue because Finance CECs must sign everything, including monies for salaries and allowances.
The Assemblies are at the mercy of the county executives since no assembly can run without funds.
