Governors ask for more funds
What you need to know:
- In its report on the Budget Policy Statement, the House Budget Committee had suggested a total allocation of Sh218 billion for the counties
- Nairobi governor Evans Kidero said unlike the first year, governors now know how much it costs to run their counties
Governors have asked the National Assembly to allocate county governments at least Sh238 billion in the coming financial year.
At the first ever meeting with the Budget and Appropriations Committee, members of the Finance Committee of the Council Governors said the Sh190 billion shared out last year was not based on facts.
In its report on the Budget Policy Statement, the House Budget Committee had suggested a total allocation of Sh218 billion for the counties as per the formula developed by the Commission on Revenue Allocation.
“The more counties are given, the easier it is to have at least some money for development and meet its operating expenditure book,” said Wajir governor Ahmed Abdullahi, who chairs the governors’ Finance team.
“We actually climbed down in a sense because our preliminary amount was Sh350 billion. We had discussions with CRA and put it Sh279 billion, so Sh238 billion is really the bottom,” he added.
Treasury has proposed that counties get Sh228 billion, up from the Sh190 billion in the first year of devolution. (READ: State accused of reducing county funds for 2014/15)
But the governors argue that the Sh190 billion base was in itself not justified. “If Sh190 billion is made the basis for allocation this year, we’re using something that was baseless,” said Kiambu Governor William Kabogo.
Nairobi governor Evans Kidero said unlike the first year, governors now know how much it costs to run their counties, with Nairobi, Kiambu, Mombasa and Nyeri having inherited large numbers of workers from the defunct local authorities.
“Last year, it was a matter of guessing. There are no questions on the cost administration, pension and the cost of new structures,” said Dr Kidero.
This amount does not include the allocation for Level 5 hospitals, said Nyeri governor Nderitu Gachagua, and the governors are opposed to a suggestion by the Treasury that the allocation for Level 5 hospitals be made part of the equitable share.
He said if this route is taken, services in the hospitals, which serve more than one county, would grind to a halt. These are the former provincial hospitals located in Embu, Garissa, Kakamega, Kiambu, Kisii, Kisumu, Machakos, Meru, Mombasa, Nakuru and Nyeri.
