Rotich thwarts bid by MPs to manage kitty

MPs have lost the support of the National Treasury in their quest to take over the management of Equalisation Fund through a constitutional amendment.

National Treasury Cabinet Secretary Henry Rotich has said that his ministry was not in support of a Bill which has already been passed seeking to amend the Constitution to make the management of the fund exclusive to MPs.

The proposed law is now before the Senate and could be thrown out because most of the senators have expressed their displeasure with it.

Appearing before the Senate Finance Committee sitting at County Hall on Thursday, Mr Rotich said it would be against the spirit of the supreme law to shift the management of the fund to lawmakers.

He said the money was not similar to the Constituency Development Fund (CDF) that had been under MPs for some time until last year when the law was changed.

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

The Fund is meant to uplift marginalised areas to the level of other more developed regions and already, the Commission on Revenue Allocation has identified 14 counties that will benefit from the money.

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

The National Treasury has so far allocated the kitty a total of Sh6.4 billion for the past two financial years. When he read the budget on Wednesday, Mr Rotich said he was adding a further Sh6 billion.

Committee members questioned the delay in the disbursement of the money saying the longer it remained unused the poorer the identified counties will get.

They said they would not accept further delay.

“The marginalisation has been going on for the last 50 years but the Constitution gives us 20 years to bring the marginalised to be at par with others. To achieve this you must redouble your efforts instead of spreading the allocation over several years,” said Makueni Senator Mutula Kilonzo Jr.

The senators said the Fund should have been allocated Sh20 billion over the last three financial years challenging the CS to ensure the gap is filled in the next budget.

“Make sure you address the arrears in the short term. Our people need this money. It was meant to address a specific problem. If you fail to give all the money then you will be negating the spirit of this fund,” said Kakamega Senator Boni Khalwale.

The counties targeted are Garissa, Isiolo, Kilifi, Kwale, Lamu, Mandera, Marsabit, Narok, Samburu, Tana River, Turkana, Taita Taveta, Wajir and West Pokot.

Turkana County will be the highest recipient as it will get Sh1 billion from the kitty.

Article 204 establishes the Fund and says that 0.5 per cent of the last audited national revenue should be allocated it every financial year.