Senate recalled over county funds crisis
From left: Members of the Senate Finance, Commerce and Budget Committee Beatrice Elachi, Billow Kerrow and Boni Khalwale. PHOTO | BILLY MUTAI |
What you need to know:
- The Council of Governors had raised concerns that operations at the counties were likely to grind to a halt due to the senators’ delay to conclude debate on the Bill.
- The House is walking a tightrope as it is behind schedule in ensuring the Bill is ready, to be presented to President Kenyatta for assent.
Senators have been recalled from recess for a special session to deal with a critical Bill that has delayed the sharing of devolved funds among counties.
Senate Speaker Ekwee Ethuro, through a Gazette notice, said Senate would resume business on Tuesday afternoon (September 2) to agree on amendments introduced to the County Allocation of Revenue Bill by the National Assembly on August 19.
The Bill provides for how the 47 counties will share national revenue through a formula that the Commission on Revenue Allocation determined.
The MPs, in their latest amendments, sought to reduce the effective date of the Bill once signed into law by the President from 14 days to seven, a change that must be returned to the Senate for adoption or rejection.
But Senate Finance Committee Chairman Billow Kerrow (Mandera, URP) said the amendment was unnecessary given that more days have been lost in the legal process of having to return the Bill to Senate following the amendments.
This comes in the wake of concerns that counties had run short of funds to meet their day-to-day operations, prompting the Treasury to share out a Sh29 billion loan to enable counties pay workers’ salaries. The amount will be refunded when the counties receive their share of the devolved funds.
The Council of Governors had raised concerns that operations at the counties were likely to grind to a halt due to the senators’ delay to conclude debate on the Bill.
Medical workers in the counties who had downed tools in protest over delayed salaries are expected to resume work following the national government’s decision to release the funds.
ON A TIGHTROPE
The House is walking a tightrope as it is behind schedule in ensuring the Bill is ready, to be presented to President Kenyatta for assent.
Counties are set to receive Sh226 billion based on the 2009/10 financial estimates and a conditional grant of Sh1.87 billion for counties with level five hospitals once the Allocation Bill is assented to.
The Division of Revenue Bill, which provides for sharing of revenue between the national and county governments, has already been endorsed by the President but, without the revenue allocation Bill, the funds cannot be shared amongst the counties.
Delays in the passage of the two Bills was occasioned by creation of a mediation committee from both Houses after the legislators failed to agree on certain aspects of the Bills.
The Division Bill had to go through a mediation committee of three members from the Senate and the National Assembly to clear contentious issues that included whether counties with level five hospitals should be allocated the conditional grant to enable the hospitals to operate optimally.
At the same time, the Senate Finance Chairman Billow Kerrow has differed with his colleagues pushing for the amendment of the Public Finance Management Act to allow county governments access devolved funds before enactment of relevant laws.
“It is absolutely not necessary to come up with a legislation aimed at ensuring the counties access a certain percentage of the funds pending the passage of the Division of Revenue and County Allocation of Revenue Bills,” said Senator Kerrow.
The senators were supposed to be away for recess until September 23 from August 7.
