Treasury to cap counties spending

Treasury has proposed that counties be barred from spending more than 35 per cent of their share of revenue on salaries and other benefits for their employees.

At the same time, county assemblies’ budgets should be limited to a maximum of seven per cent of the county’s total revenues or twice its salaries and other benefits, whichever is lower.

The proposals are contained in regulations submitted to the National Assembly for approval by the Committee on Delegated Legislation. The regulations will operationalise the Public Finance Management Act.

Treasury Cabinet Secretary Henry Rotich said in the explanatory note attached to the regulations that different stakeholders recommended the separation of regulations governing county and national governments.

The rules stipulate that each county government’s accounting officer will also be required to send a report every three months to the Treasury on the application of the regulations.

“It is considered that the provisions of the proposed regulations…will provide a sufficient level of economic, fiscal and financial detail and adequate time for the legislatures at the national and county governments to perform their oversight role in an effective manner,” he added.

BUDGET CEILINGS

The regulations are an addition to budget ceilings proposed by the Commission on Revenue Allocation and the Controller of Budget and backed by the Senate.

County assembles across the country have had to temporarily cease operations after running out of funds, with the High Court backing CRA’s move after the County Assemblies Forum challenged the budget caps in court.

The regulations also cover preparation and approval of budgets, taking of loans, incurrence of debts, the establishment of certain funds and right down to limiting the use of green and brown colours of ink in the signing of documents.

The regulations also place limits on the kind of official cars that can be bought for the various public officers in the county governments.

Governors’ saloon cars shall not exceed 2,600 cc while the four-wheel vehicles shall have a maximum 3,000 cc engine capacities.

Official saloon cars for deputy governors, county assembly speakers and county executive committee members shall have a maximum of 2,400 cc while four-wheel drive vehicles shall have 3,000 cc.

Chief officers, county assembly clerks and other officers on job groups R shall have official saloon cars with a maximum engine capacity of 2,000 cc and 2,900 cc for four-wheel drive utility vehicles.