Clash looms between Senate and National Assembly over funds to counties
Members of Parliament during a past session.
Senators are set for a major clash with members of the National Assembly over the sharing of Sh2.94 trillion between the national government and counties.
The development comes at a time when legislators in the Upper House are demanding for Sh415.9 billion to be allocated to the devolved units against the Sh391.1 billion approved by the National Assembly for the financial year ending June 2025.
The senators have rallied around a report prepared by the Finance and Budget Committee that recommended that counties be allocated Sh415.9 billion.
Mandera Senator Ali Roba, who chairs the Senate Finance Committee, said there was no way counties would get an increase of Sh5.6 billion in equitable share of revenue against non-discretionary financial obligations of more than Sh34 billion.
The 47 county governments are getting Sh385.4 billion in the current financial year.
The Commission on Revenue Allocation (CRA) had recommended a figure of Sh398 billion while governors had demanded Sh439.5 billion.
Mr Roba said county governments will inherit on their payroll Sh4 billion in housing levy, Sh3 billion in enhanced National Social and Security Fund (NSSF) contributions and Sh5.3 billion for county aggregation and industrial parks.
The counties will also pay community health promoters Sh3.23 billion as well as Sh5.64 billion for medical equipment services and Sh2.85 for the Integrated Payroll and Personnel Database. There is also Sh5.8 billion to cater for the collective bargaining agreement signed with doctors.
Further poking holes into the National Assembly’s figure, Mr Roba said the MPs used a wrong base for allocation — Sh374 billion instead of Sh385.4 billion, which is the Division of the Revenue Act of the previous financial year.
Governors contend that the projected ordinary revenue is set to grow by 15 percent, demanding that counties should be allocated Sh439.5 billion.
Mr Roba said their proposal was based on adjusting the base of Sh385 billion to cater for non-discretionary financial obligations relating to housing levy deductions, enhanced contributions to the NSSF, the Social Health Insurance Fund and for counties to match allocations for industrial parks.
Vihiga Senator Godfrey Osotsi rallied the House to stand by the Finance Committee’s figure, expressing surprise at the Sh391.1 billion figure given by the National Assembly.
“I request colleagues in this House to stand firm and approve the recommendations by the committee that the shareable revenue for our counties be Sh415.9 billion,” he said.
Narok Senator Ledama Olekina criticised the National Assembly for misleading Kenyans that counties will get an increase of 24.9 percent in allocation whereas the increase is only 13 percent, which is against the Constitution.
Kakamega Senator Boni Khalwale said the National Assembly had agreed with the National Treasury without listening to senators about the needs of counties and their residents.
Kitui Senator Enock Wambua termed as illogical the fact that the National Assembly was being guided by a percentage derived from audited and approved revenues of four financial years to decide how much money shall be given to the counties.
“I am praying that, this time round, the Senate will speak in one voice and determine that we are going to allocate Sh415.9 billion to our counties,” he said.
