End county funds standoff
What is quite annoying about some of the financial problems bedevilling the 47 counties is that they can be easily solved. The failure by those concerned to consult and quickly clear some administrative hitches is needlessly causing a lot of suffering.
The counties are once again staring at a cash crisis. This follows a National Assembly committee’s rejection of the Senate’s amendment to the Division of Revenue Bill, 2024 to allocate Sh400 billion as the shareable revenue to the devolved units.
The Budget and Appropriations Committee has maintained its proposal to allocate Sh380 billion to the counties, as approved in the Division of Revenue Bill, 2024. Two weeks ago, the Senate overturned the proposed Sh380 billion shareable revenue to the county governments.
This now means that the Bill is headed for mediation between the National Assembly and the Senate to agree on the amount. Both sides have taken hard-line positions, with the committee arguing that the government is facing dire financial constraints. The Speakers of both the National Assembly and the Senate will appoint a mediation committee consisting of an equal number of members to develop what is agreeable to both parties.
Recently, new Treasury Cabinet Secretary John Mbadi revealed that a tidy Sh42 billion was lying idle in the County Revenue Fund account. He thus challenged governors to liaise with Controller of Budget Margaret Nyakang’o to unlock the funds. This, at a time when some employees have not been paid salaries for several months and pending bills continue to pile up.
The tug-of war-between the two Houses of Parliament is not helping the counties. The financial standoff delaying disbursements should be resolved quickly to enable the counties to receive the monies and cater for their operations.
