Senate Majority Leader Aaron Cheruiyot on Wednesday, June 14, tabled a bill proposing to regulate powers enjoyed by county governments in enforcing taxes and levies.
The County Governments (Revenue Raising Process) Bill, 2023, proposes the formation of an Inter-Agency Committee that will consist of four individuals.
The Cabinet Secretary of the National Treasury (Now headed by Njuguna Ndung'u), the Intergovernmental Relations Technical Committee, the Council of Governors and the Kenya Revenue Authority (KRA) will be each accorded a chance to nominate an individual for the committee.
According to the senator, the committee will be responsible for considering and approving all taxes as well as charges imposed by a county government.
“The Committee shall within three months from the date of receipt of the proposal under subsection (1), consider the proposal and notify the County Executive Committee member of its decision in writing,” the bill read in part.
At the same time, Cheruiyot proposed that the county government should be barred from issuing tax waivers or waivers for licensing fees including fines and penalties.
However, where legislation permits the waiver of any tax or licensing fee, the county treasury will be expected to maintain a record of each waiver together with the reason for the waiver.
Additionally, the bill stated that the County Executive Committee member ought to report the waiver and the reason for the waiver to the Auditor-General within three months of the waiver being granted.
"Where the national government and a county government are unable to reach an agreement on the proposed imposition or revision of a tax, fee, or charge, the national government and county government shall be guided by the provisions of the Intergovernmental Relations Act on dispute resolution.
"Any county tax or revenue-raising measure imposed by county governments prior to the effective date of this Act, including waivers and variations, shall be deemed to have been imposed, waived, or varied in accordance with this Act,” added Cheruiyot.
According to lawmaker, the bill will prevent counties from exercising their revenue-raising powers in a manner to affect the national economic policies, economic activities across county boundaries or the national mobility of goods, services, capital or labour.
Members of County Assemblies across the country downed their tools after the National Treasury failed to heed to their demands including being granted financial autonomy to aid in the effective execution of their mandate.
Additionally, the MCAs lamented that they were being treated unfairly noting that their salary packages and corresponding allowances were not enough.
“We have sought a resolution of the issues, but it is not forthcoming. We, therefore, have no other option but to call upon our members to down their tools across the 47 counties with immediate effect,” Kinani ward representative, Francis Wambua, who is also the chairman of the newly established Members of the County Assembly Congress, stated at the time.
