Rotich: MPs should not manage Equalisation Fund

MPs lost the support of the National Treasury in their quest to take over management of the Equalisation Fund.

They have already passed a Bill that seeks to amend the law to make management of the fund exclusively theirs.

The proposed law is at the Senate and will likely be thrown out.

Appearing before the Senate Finance Committee at County Hall on Thursday, Treasury CS Henry Rotich said it would be against the Constitution to shift management of the fund to lawmakers.

He said the fund was not similar to the Constituency Development Fund.

“Members of the National Assembly thought the money would be given to governors. It is not true because the Constitution says the money should be managed by the national government or can be disbursed to counties,” Mr Rotich said.

The fund is meant to improve living standards in marginalised areas to the level of more developed regions. Already, the Commission on Revenue Allocation has identified 14 counties that would get the money.

“It will not be constitutional to set up another line of funding similar to CDF. We do not support the amendment. We gave our comments indicating why we did not support the amendment,” he added.

The National Treasury has given the kitty Sh6.4 billion in the past two financial years.

When he read the budget on Wednesday, Mr Rotich said the fund would get Sh6 billion more.

Committee members questioned the delay in the disbursement of the money saying the longer it remained unused the poorer the counties would get. They said they would not accept more delays.

“Marginalisation has been going on for 50 years, but the Constitution gives us 20 years to make the counties at par with others. You must redouble your efforts instead of spreading the allocation over several years,” Makueni Senator Mutula Kilonzo Jr said.

The senators said the Fund should have been allocated Sh20 billion in the last three financial years and challenged Mr Rotich to ensure the gap was filled in the next budget.