Senate unhappy with MPs’ move to cut county cash by Sh8bn

Senators are headed for a duel with their colleagues in the National Assembly following a move by the Members of Parliament to reduce allocations to counties for the next financial year by Sh8 billion.

Already, the Division of Revenue Bill, which determines the amount for the devolved units, has been subjected to public participation by the Senate Finance Committee as senators seek to fast-track its enactment into law.

From the deliberations so far, it is clear the Bill will have to go through mediation, which entails a committee of equal members from both Houses, to strike a compromise.

Senators who spoke to the Nation were categorical that they will not be used to rubber-stamp the ‘mischief’ of MPs, who decided to reduce the equitable revenue share from Sh299.1 billion that the National Treasury had proposed to Sh291.1 billion.

Whereas Treasury Cabinet Secretary Henry Rotich defended the MPs, saying they had a right to adjust the amount, senators see the move as aimed at denying counties adequate funds for devolved functions.

Mr Rotich further said besides, the allocation is an improvement of the Sh280.3 billion for 2016/2017.

MEET INFLATIONARY TRENDS

Nyeri Senator Mutahi Kagwe and his Makueni counterpart Mutula Kilonzo Jr said the Commission on Revenue Allocation (CRA) had done a fantastic job but that was watered down by the National Assembly.

Last week, the commission’s chief executive officer, Mr George Ouko, told the Senate’s Finance Committee CRA had  proposed that the devolved units be allocated a sharable revenue of Sh314 billion. The Sh291.1 billion, he said, implied that counties will be growing at 3.8 per cent, below the inflation rate of 6.7 per cent.

“With the current allocation, the county governments will not even meet inflationary trends,” said Mr Kagwe. “For an allocation to be meaningful as growth from the previous years, inflation must be factored in.”

He observed that frequent strikes, especially in the health sector, were due to inadequate funding to counties yet 70 per cent of the sector’s employees were under the counties.

“To protect devolution, there has to be a healthy respect of requirements of the counties,” said Mr Kagwe.

Governors are banking on the Senate to reconsider the allocations, which they said will hurt service delivery at the counties.

Mr Kilonzo Jr said the Senate will most likely reject the Bill as a protest against a move by Treasury to conspire with MPs to sabotage counties by ensuring they do not run their operations smoothly.