Breakthrough over revenue Bill

MPs and senators Thursday agreed on a mediated version of the revenue Bill to save the counties from a financial crisis.

MPs ceded ground in their hard-line position and allowed senators to add Sh3.3 billion from the Sh7 billion they had proposed to the initial Sh283.7 billion.

County governments stand to share Sh287 billion if the National Assembly endorses the mediation committee’s report.

Intense negotiations played a crucial role in unlocking the stalemate over the Division of Revenue Bill that determines how funds are shared between the national and county governments.

Mbeere South MP Mutava Musyimi, who chaired the mediation committee, tabled a mediated version of the Bill in the National Assembly before it adjourned until next Wednesday.

The National Assembly had proposed to allocate Sh283.7 billion to the counties but the Senate raised the figure to Sh291.4 billion, creating the deadlock. The two Houses have to agree on the Bill before it is forwarded to the President for assent.

Senators were yesterday upbeat they had won additional funds for the counties.

Mr Mutahi Kagwe (Nyeri, Narc), who was the vice-chairman of the mediation team, said the committee opted to scrap the Sh4.4 billion they had set aside for emergencies after they agreed it was the preserve of the counties to establish the fund.

However, the team agreed that level five hospitals deserved an additional Sh1.5 billion. Senators commended Ruaraka MP Tom Kajwang’ for supporting their bid to increase the county allocations.

EXTREMELY DIFFICULT

“This has been an extremely difficult process. We had five sittings to deliberate on this matter,” said Mr Kagwe. He said he wondered why MPs were reluctant to accommodate the Senate’s amendments yet they appreciated the fact that health care required adequate funding to improve services.

“Going forward, the two Houses need to agree on the sharable revenue before the Bill is published to avoid such conflicts that risk exposing both the national and county government to a serious financial crisis,” said Mr Kagwe.

He said it was wrong for some legislators to create an impression that it is only the county governments that will suffer financially if the Bill is not passed.

Senate Minority Leader Moses Wetang’ula (Bungoma, Ford-K) appealed to the National Assembly to support the mediated version.

Kiraitu Murungi (Meru, APK) said the mediation committee had come up with a Solomonic decision, adding that those who don’t believe in devolution have no place in the new era.

The tug of war over how the funds should be shared has always been a bone of contention.

In the first year of devolution, the matter ended up in court, which ruled that the Senate must be involved in the Division of Revenue Bill.

In the second year, a mediation committee was formed after the two Houses failed to reach a consensus on how the funds should be shared.
Last year, county governments were allocated Sh226 billion after the stalemate went through a mediation committee.