DP Ruto cautions governors on revenue allocation demands

Deputy President William Ruto chats with governors Evans Kidero (Nairobi), Salim Mvurya (Kwale) and Kenneth Lusaka (Bungoma) during the Intergovernmental Budget and Economic Council (IBEC) meeting at his Karen residence in Nairobi on February 9, 2016. PHOTO | DPPS

What you need to know:

  • He was responding to demands by governors that they should be allocated 42 per cent of the country’s revenue.
  • Peter Munya said county governments were willing to accept the 35 per cent allocation.

Deputy President William Ruto has said county governments will be allocated funds according to available resources.

“We should share real money. We cannot share what we do not have,” said the Deputy President.

He warned that demand for more funds by county governments could plunge the country deeper into debt.

“I must say that we are reluctant to continue borrowing monies,” he said.

The Deputy President was speaking during a meeting of the Intergovernmental Budget and Economic Council (IBEC) held at his Karen office, Nairobi.

He was responding to governors' demands that they should be allocated 42 per cent of the country’s revenue.

The National Treasury has proposed counties be allocated a 31 per cent share of the total shareable revenue.

The Commission of Revenue Authority (CRA), on the other hand, has proposed that counties should get 35 per cent of the shareable revenue.

The meeting discussed the division of revenue for the next financial year, budget policy statement and transfer of devolved functions.

Mr Ruto said the issue of different revenue allocation proposals by the CRA and the National Treasury would be referred to Parliament for resolution.

“I am confident that they will put into consideration suggestions from this forum and reach consensus on how to share revenue. I call for patience as we wait for Parliament to resolve this matter,” he said.

Council of Governors chairman Peter Munya said county governments were willing to accept the 35 per cent allocation.

“We should take a common ground in sharing of revenues so that we have smooth running of programs at the counties.

“We have decided to come down to the figure that has been suggested by [the] CRA that our allocation should stand at 35 per cent,” said Mr Munya.

Treasury Cabinet Secretary Henry Rotich, his Devolution counterpart Mwangi Kiunjuri and CRA chairman Micah Cheserem were present at the meeting.