MPs want Sh258bn for counties slashed

What you need to know:

  • Committee pushes for reduction of devolved units’ allocation by Sh12bn.
  • Senators, woman reps and CDF might benefit.

The Budget and Appropriations Committee wants the proposed Sh258 billion revenue allocation to counties reduced by Sh12.4 billion.

The National Assembly committee proposes that Sh5.5 billion of the Sh12.4 billion be shared between the Constituency Development Fund (an additional Sh2 billion), Woman Representatives (Sh2 billion) and Senators (Sh1.45 billion).

According to the parliamentary team, the increased CDF cash should be used to fund the development of village polytechnics.

The 47 woman representatives were allocated Sh2.03 billion in the last Budget but have been unable to spend it after the National Treasury delayed in preparing regulations for its implementation.

The allocation of Sh1.45 billion for senators is indicated as being intended for “monitoring and evaluation.”

In the report tabled in the National Assembly, the committee chaired by Mbeere South MP Mutava Musyimi wants the allocation to Parliament increased by Sh5.5 billion.

Meanwhile, counties suffered a big blow after senators threw out a new formula proposed to share Sh258 billion among devolved governments this year.

The formula created by the Commission on Revenue Allocation to be used over the next five years.

SALARY NEEDS

The sharing method dismissed by the Senate proposed two per cent of the Sh258 billion be distributed among the counties, depending on their salary needs.

It was intended to cater for the ballooning wage bills and prevent counties from using development money to pay workers.

The commission’s formula proposed that 45 per cent be distributed among the counties based on their population; basic share at 25 per cent; poverty index, 18 per cent; eight per cent for land mass; two per cent for personnel emolument; one per cent fiscal responsibility and one per cent considering development of a county.

On Wednesday, Senate Speaker Ekwee Ethuro asked senators to find common ground on the formula.

He spoke to journalists after meeting Omani Ambassador to Kenya Saleh Alharti who paid him a courtesy call in his office.

Mombasa Senator Hassan Omar said the new formula promoted inequality when devolution was meant to enhance equity.

“This sets up my county for failure and ridicule,” Senator Omar said.