The Intergovernmental Budget and Economic Council (IBEC) under the chairmanship of Deputy President William Ruto on Monday, November 11 turned down a proposal from the county governments, requesting access to short term loans from the Central Bank of Kenya.
According to a report by Nation, the DP stated that the decision was reached after the East African countries agreed not to borrow from their Central Banks.
“The countries agreed that governments should avoid borrowing from their central banks. The position is to be to harmonised by 2021.
"The proposal was rejected because the national government is in the process of withdrawing from short-term borrowing," DP Ruto explained.
The decision was arrived at during an IBEC meeting in DP Ruto's official residence in Karen.
The DP announced that Ksh62 billion had been paid to the devolved units in the first quarter and only 20 counties were yet to receive their share.
He further added that the council agreed on a framework that would enable counties to assess their assets for creditworthiness.
“Through this, counties will be able to access up to 20 per cent of their revenues from their own and sharable revenues,” Ruto mentioned.
DP Ruto further communicated that the national government was in discussion with Chief Justice David Maraga, for the county governments to surrender municipal courts to the Judiciary.
“We have asked Treasury, the Judiciary and CRA to see how to build the capacity of municipal courts and enforcement officers to make them more professional, thereby alleviating the burden on counties," he spoke.
According to the Council of Governors, they had already relinquished the municipal courts to the Judiciary but were yet to agree of the formula to divide the proceeds from the court fines.
The CoG was demanding 70 per cent of the proceeds and the other 30 per cent be allocated to the national government as the Municipal courts majorly dealt with cases of people who violate county government by-laws.
CoG Chairperson Wycliffe Oparanya who was also present in the meeting appreciated the need for the national government to strengthen its working relationship with counties.
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