Budget to be slashed by Sh150m after new rules

What you need to know:

  • Controller of Budget Agnes Odhiambo said 25 county governments should not receive their full allocations for the year from the National Treasury until they comply with the regulations that guide spending in counties.
  • On Tuesday, County Secretary Ibrahim Siyat said Lamu failed to comply with the requirements of the Commission on Revenue Allocation, and the Controller of Budget after members doubled the assembly budget from Sh150 million to Sh300 million.
  • The assemblies had moved to court in a bid to have circulars setting the ceilings, issued by the commission and Mrs Odhiambo, declared unconstitutional.

Members of the county assembly will be forced to slash their budget by Sh150 million to enable the devolved unit to comply with the new rules guiding spending.

Lamu is among five Coast devolved units whose allocations are being withheld by the National Treasury because they have overshot their budget ceilings.

The other counties are Mombasa, Kilifi, Tana River and Kwale.

Controller of Budget Agnes Odhiambo said 25 county governments should not receive their full allocations for the year from the National Treasury until they comply with the regulations that guide spending in counties.

On Tuesday, County Secretary Ibrahim Siyat said Lamu failed to comply with the requirements of the Commission on Revenue Allocation, and the Controller of Budget after members doubled the assembly budget from Sh150 million to Sh300 million.

He said the county had proposed a budget of Sh150 million for the assembly.

Mr Siyat said the High Court last week dismissed a petition filed by county assemblies seeking to challenge the set ceilings.

The assemblies had moved to court in a bid to have circulars setting the ceilings, issued by the commission and Mrs Odhiambo, declared unconstitutional.

“The petition by the county assemblies was thrown out by the High Court. The Lamu County Assembly must, therefore, slash its budget to meet its ceiling,” said Mr Siyat.

“The executive is holding talks with assembly members to address the concerns raised by the Controller of Budget.”