Senate, National Assembly strike deal on grants bill

Kieni MP Kanini Kega

Kieni MP Kanini Kega who is the chairman of the Budget and Appropriations committee. The Senate and National Assembly have agreed on a deal on the County Governments Grants Bill, 2021.

Photo credit: File | Nation Media Group

The Senate and National Assembly have agreed on a deal on the County Governments Grants Bill, 2021, paving the way for the disbursement of nearly Sh40 billion to counties in conditional funding.

The deal also paves the way for the debate on the Division of Revenue Bill, 2022, which the Senate had refused to consider as their leverage in ending the impasse over the Grants Bill.

At a meeting of the mediation committee held on Thursday, members of the committee agreed that all amendments by the National Assembly to the initial Grants Bill be dropped and the Bill as passed by the Senate be adopted.

“After extensive consultations we have agreed that the Bill as developed by the Senate be adopted as it is good for both Houses,” said Mr Kanini Kega, a member of the committee representing the National Assembly said.

Good for the country

“The Bill is good for the country and we shall report to the two Houses so that these funds are unlocked.”

Mr Kega is the Kieni MP and also the chairman of the Budget and Appropriations committee.

The agreement unlocks the disbursement of the Sh39 billion to counties, funds mainly drawn from donors and the national government as conditional grants to the 47 devolved units

Out of the total figure, Sh32 billion is sourced from multi-lateral support for some social programmes in counties while the remaining Sh7 billion is a donation from the national government.

The report of the mediation committee is to be submitted to both Houses for deliberation before the members take a vote. If both Houses adopt the report, then the mediated Bill will be submitted to the President for assent.

Annual Budget speech

Last week, National Assembly Speaker Justin Muturi ruled that he will not allow National Treasury CS Ukur Yatani to deliver the annual Budget speech on April 7 unless the Division of Revenue Bill, 2022 is enacted into law.

On Tuesday, senators refused to consider the Division of Revenue Bill, 2022, until the impasse on the Grants Bill is settled and the mediation committee submits its report to the House for debate.

The Grants Bill was introduced in the Senate in May last year. However when considering the debate late last year, the National Assembly made amendments that senators have rejected as they consider them a drawback to devolution.

The silent war between the two Houses over the Grants Bill boiled over when senators suspended their Tuesday sitting on to discuss the mediation process at a closed door meeting that was chaired by Speaker Kenneth Lusaka.