Senate Agrees to Increase County Funds

proceedings underway at the Senate during a past session
Proceedings underway at the Senate during a past session.
File

The Senate Business Committee on Tuesday, August 11,approved the proposed motion to increase the county revenue allocation fund from Ksh316 billion to Ksh348 billion.

Nominated Senator Petronilla Were had tabled the motion before the special committee seeking to overturn the decision by Treasury to cap the figure at Ksh316 billion.

On March 10, Treasury CS Ukur Yatani ignored the recommendations of the Commission on Revenue Allocation (CRA) and capped equitable share for counties at Ksh316.5 billion.

He further stated that his decision was based on the need for counties to bear the brunt of missed revenues targets.

A file image of Treasury CS Ukur Yatani
A file image of Treasury CS Ukur Yatani
Citizen Digital

The implication of CS Yatani's decision was that that there would be no additional funding from the equitable revenue share for county governments’ wage and salary costs.

The contentious issue had seen the two Houses (National Assembly and the Senate) clash, with MPs agreeing to the Ksh316 billion cap, while the Senate pushed for an increment.

Former National Assembly Majority Leader Aden Duale had urged lawmakers to cut the allocation to counties, citing the harsh economic effects of the Covid-19 pandemic. 

On his part, Kikuyu MP Kimani Ichung'wah warned that the pandemic now ravaging the world "will hit us hard in terms of revenue projection for this year and the next financial year".

The stalemate saw the 47 governors move to the Supreme Court on July 15, 2019, to challenge the division of shareable revenue in a bid to get a breakthrough.

Once adopted, the amended bill will be sent to President Uhuru Kenyatta, whose assent is required before they become law. 

President Uhuru Kenyatta signing a ball after meeting with leaders from Western Kenya on July 1, 2020.
President Uhuru Kenyatta signing a ball after meeting with leaders from Western Kenya on July 1, 2020.
PSCU