Ruto to chair COG summit to end revenue impasse

Governors are demanding Sh425 billion but the national government said it would offer Sh380 billion

In Summary
  • The amount is 14.8 per cent of the projected total revenue collection of Sh2.9 trillion.
  • Commission on Revenue Allocation has said it is ready to adjust it to Sh407 billion.
President William Ruto
President William Ruto
Image: WILLIAM RUTO/TWITTER

President William Ruto is expected to chair a governors' summit to resolve the revenue allocation stalemate.

The two-day conference comes after spirited efforts by Deputy President Rigathi Gachagua to unlock the stalemate failed.

The meeting will be held in Naivasha on February 10-11.

As per the law, the President and county chiefs are to meet twice a year to review and discuss among other issues those facing the devolved units.

Governors are demanding Sh425 billion but the national government said it would offer Sh380 billion as per the budget policy statement.

The amount is 14.8 per cent of the projected total revenue collection of Sh2.9 trillion.

Commission on Revenue Allocation has said it is ready to adjust it to Sh407 billion.

On Wednesday last week, Gachagua chaired an Intergovernmental Budget and Economic Council meeting with COG to deliberate on the matter but failed to strike a deal.

Speaking in Mombasa during the close of the four-day post-election seminar for senators, Gachagua said the government was not ready to increase the allocation.

"The issue we had with the council of governors is a simple matter, they are asking for Sh425 billion. CRA is saying in our scheme of mathematics you can give Sh407 billion. The national government is saying Sh425 billion is good, we can give it to you but we don't have it, Sh407 billion is even better, but we don't have it, we only have Sh380 billion," Gachagua said.

"What we don't want to do is to cheat governors that we will give them money that we don't have. They were promised Sh50 billion, but it never came."

The Council of Governors has already declared Uasin Gishu as the host of the inaugural biennial devolution conference.

It will be held on August 16-19 this year and is themed “10 years of Devolution: The Present and Future”.

“The conference will adopt a break-away session format. Proposed sessions include urban development, affirmative action, natural resources management, health, agriculture and trade,” the COG said in a statement.

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