Proposal to use tax in counties opposed

What you need to know:

  • The ward reps, through their County Assembly Forum lobby, said allowing governors access the money without approval would be unconstitutional.
  • All the money collected as taxes and levies in counties is deposited at the Central Bank of Kenya before approval is granted for withdrawal and use.
  • Mr Kochei accused governors of abetting corruption and failing to seal loopholes in revenue-collection systems.
  • Governors, through their chairman Peter Munya, accused their critics of making judgment based on scanty information.
  • Ward reps also accused governors of failing to involve the public when making decisions, leading to slow development.

Members of county assemblies have launched a fresh onslaught on governors over plans by county bosses to use local revenues at source.

The ward reps, through their County Assembly Forum lobby, said allowing governors access the money without approval would be unconstitutional.

Council of Governors finance committee chairman Wycliffe Oparanya said the move was in response to a rejection of their proposals by the National Treasury and Parliament to increase money allocated to counties.

But speaking to the Nation on Monday, CAF Secretary-General Albert Kochei said the request was insincere and prone to abuse.

“No county should use revenue collected at source. All the money must be banked in the county revenue account,” said Mr Kochei.

All the money collected as taxes and levies in counties is deposited at the Central Bank of Kenya before an approval is granted for withdrawal and use.

Mr Kochei accused governors of abetting corruption and failing to seal loopholes in revenue-collection systems.

According to Mr Kochei, the situation had been made worse by failure of county governments to automate revenue collection.

“There are a lot of leakages when collecting revenue,” he said.

“We challenge governors to automate their systems by December.”

Governors have been on the spot over revenue collected, figures the Controller of Budget Agnes Odhiambo says are much lower compared to what defunct local authorities used to get.

County bosses, through their chairman Peter Munya, accused their critics of making judgment based on scanty information. The Meru governor said devolved governments set high targets that they failed to meet in their first year in office, but had since adjusted them.

“We now collect more than the defunct local authorities. Governors are being painted in bad light,” said Mr Munya.

Ward reps also accused governors of failing to involve the public when making decisions, leading to slow development.

“We have seen cases where residents stage protests when an investor wants to set up a factory, meaning there was no consultation,” said Mr Kochei.