Observe PFM Act in budgets

Devolution is the highest form of decentralisation in Kenya ever. It involves distribution of administrative, political and financial powers, and to generate and spend revenue, from the centre to lower levels of governance.

But contrary to the vision, some county governments have misused the powers entrusted in them by formulating and implementing budgets that go against the law and deny Kenyans the opportunity to enjoy devolution as aspired by the Constitution.

Some 18 of the 47 counties are at risk of not receiving an allocation from the National Treasury this financial year for not adhering to a 35 per cent threshold on recurrent expenditure for salaries and wages. An analysis by the Controller of Budget (CoB) on county staff salaries for the first nine months of FY 2020-2021 as a proportion of income received by counties indicts them.

The “Budget Review and Outlook Paper (BROP)” published by the Treasury shows over half of their expenditure goes to personnel emoluments, a gross breach of the law. Whereas it denies funds to development projects, the high spending on wages often does not translate to better service delivery, raising concerns over the remuneration of ghost workers.

MPs must now move in support of stoppage of funds to the named counties over the concerns raised by the CoB. The Constitution allows the national government to stop up to 50 per cent of the funds flowing to a county government for 60 days if they fail to contain their expenditure at sustainable levels and in compliance with Regulation 25 (1) (b) of the Public Finance Management (County Governments) Regulations (2015).

The Senate should also step up their oversight responsibility of ensuring development and recurrent expenditures by counties are within the slated caps so as to secure the will of devolution rather than undermine it.

Mr Fatinato is a youth coordinator at Centre for the Study of Adolescence. [email protected].