Senators hand counties extra Sh3bn

The Senate has authorised county assemblies to spend an additional Sh3 billion in a suspect move likely to escalate its supremacy battle with the National Assembly.

The money will mainly be used by assemblies to fund their recurrent budgets. Most of the money will be used on sitting allowances for MCAs and assembly staff, as well as domestic and foreign travel allowances.

The move goes against an earlier directive by the Commission on Revenue Authority (CRA) which set spending ceilings for county assemblies at Sh24.9 billion for recurrent budgets so as to save more money for development.

The decision will be viewed with suspicion, coming just after senators announced a plan to cut powers of MPs through a referendum, a process in which the role of MCAs is crucial.

A letter by the Senate Finance Committee dated June 24, and which the Nation has seen, directs governors to approve assembly budgets with a new ceiling of Sh27.9 billion.

The new ceiling means governors may have to postpone or drop development projects to fund county assemblies, whose biggest spenders are MCAs. 

“The Senate Standing Committee on Finance, Commerce and Budget has examined and reviewed the draft ceilings with a view to ensuring effective functioning of both arms of government at the county level as well as instilling fiduciary responsibility,” reads a letter by committee chairman and Mandera Senator Billow Kerrow.

In the letter addressed to Council of Governors Chairman Peter Munya, Mr Kerrow says: “Please find enclosed herewith the respective amended budget ceilings for each county government to be observed in preparing and implementing the 2015/16 annual budget.”

County assemblies had tried to quash the CRA ceilings through courts but failed.

The Senate decision has, however, created confusion in counties ahead of tomorrow’s deadline for passing budgets, after some MCAs threatened to bloc their respective budgets if governors fail to factor in the enhanced ceilings recommended by the Senate.

County assemblies that will benefit most from the amended ceilings include Nairobi, which gets Sh1.2 billion, Turkana (Sh977 million), Kiambu (Sh889 million), Meru (Sh839 million) and Nakuru at Sh792 million.

Others are Kakamega (Sh786 million), Migori (Sh727 million), Kisii (Sh725 million), Homa Bay (Sh722 million) and Bungoma who get Sh677 million.

County executives will only be allowed to spend a maximum of Sh20 billion after the Senate maintained the maximum spending limit the CRA set.

This means county governments will spend a total of Sh48 billion on recurrent expenditures, up from Sh44.9 billion that the revenue commission had set.

Under the new ceilings, Sh331 million has been set aside for the 47 speakers’ salaries alone. The assemblies will spend another Sh263 million in paying salaries, gratuity and National Hospital Insurance Fund contributions for deputy speakers.

Another Sh5 billion pays salaries for 4,150 staff working for MCAs at their ward offices.