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County employees, traders casualties of Sh10 billion standoff between governors and MPs

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 Community health promoters demonstrate how to use  insecticide-treated bed nets to residents of Muserechi in Baringo County.

Photo credit: Boniface Mwangi I Nation Media Group

Monies meant to pay Community Health Promoters (CHPs) and striking health workers at the counties are among the billions that cannot be released to the devolved units as the tussle over control of the Sh10.5 billion road levy rages on.

Funds meant to pay salary arrears for county staff and setting up of County Aggregation and Industrial Parks (CAIP) are also stuck as Members of the National Assembly, Senators, and Council of Governors continue to fight over the control of the Roads Maintenance Levy Fund (RMLF).

The Funds are contained in the County Governments Additional Allocations Bill, 2025 which is yet to be passed as the two Houses continue to fight over the inclusion of the Sh10.5 billion in the proposed law.

The Bill was published without the RMLF provision and Members of the National Assembly want it passed in that form but Senators have rejected that move insisting the levy fund must be included in the Bill.

This grandstanding has caused the delay in passing the Bill since last year and now with only three months to the end of the Financial Year, counties are staring at missing Sh410 billion if the stand-off continues.

The two Houses must agree on the funds contained in the Bill before they are disbursed to the devolved units.

As the two Houses continue to flex their muscles, it means the counties cannot get Sh10.5 billion, a conditional grant meant for the County Aggregation and Industrial Parks (CAIP), and Sh1.75 billion conditional allocation for the settlement salary arrears for the healthcare workers.

The money is meant to partly fulfill the 2017-2021 Collective Bargaining Agreement (CBA) signed by the health workers.

Also held as the Bill drags due to the supremacy battle on the control of the RMLF is the Sh3.24 billion to be shared among the 47 counties meant to pay Community Health Promoters (CHPS).

The tussle between the two Houses also means Sh1.75 billion meant to clear salary arrears for county workers who have gone for several months without pay cannot be released.

In addition, Sh33 billion from development partners to various counties to support various projects is also stuck at the Consolidated Fund as the Bill drags on in parliament.

These funds cannot be released to counties because there is no legal framework to disburse them to the devolved units. It is only the passage of the Bill that will unlock this impasse.

Over Sh116 million collected by various counties as court fines cannot also be released to the counties.

The funds were collected by various counties as fines for various offences but cannot be spent at the source because the law demands that all revenues collected by the judiciary should be taken to the Consolidated Fund before disbursement.

While debating the Bill on Tuesday, MPs urged their colleagues in the Senate to drop the grandstanding and allow the legislation to be passed in its current form.

“It is sad that three months into the new financial year, we have not passed the Bill. I want to say that it is not the National Assembly, Senate, or Council of Governors that are losing but the people of Kenya,” said Majority leader Kimani Ichung’wah.

“I want to plead with the other House not to bring an amendment and bring RMLF because it will face challenges in this House,” he added.

Funyula MP Wilberforce Oundo expressed concern that the delay may lead to low absorption of the fund if the Bill is finally passed by the two Houses.

“We are here because of the insurgence of the Senate and the big head of the Senate. It’s very unlikely these funds will be absorbed by counties,” Dr Oundo said.

Ndhiwa MP Martin Owino said there is a need for the two Houses to pass the Bill so that the additional funds can be released to counties.

“I feel like the Senate and Council of Governors are shooting themselves in the foot by insisting that the Sh10 billion must be included in this Bill,” Mr Owino said.

Seme MP James Nyikal regretted that the Houses are fighting while essential services in the county are starved of funds.

“It saddens me that we are still talking about money for 2024/2025 which should have gone to the ground and served the people already,” Dr Nyikal said.

Moiben MP Phylis Bartoo decried that despite the work done by the community health promoters, their pay coming from county governments has not been remitted due to the standoff.

“The community health promoters cannot get their Sh5,000 stipend despite doing their work diligently,” Ms Bartoo said.