MPs pass Division of Revenue Bill, give counties Sh287bn at last

MPs on Wednesday finally passed the Division of Revenue Bill to save counties from plunging into a financial crisis.

But they took away Sh2 billion from the Senate and the Judiciary, accusing the two institutions of being the cause of the stalemate.

They said senators and the courts had to be taught a lesson by cutting funds, stifling their operations.

Senators protested the decision last evening, saying they were just pushing for more funds for Level 5 hospitals.

The MPs also cut the budget for the Salaries and Remuneration Commission by half, but did not touch a cent of the Sh15.1 billion they allocated themselves for salaries and travel in the next financial year.

The three institutions were targeted for being a stumbling block to MPs’ unquestionable say over the budget.

The Senate wanted Sh1 billion for the monitoring and evaluation of devolution, but will now not get it.

The Judiciary suffered because of a Supreme Court decision in 2013 that gave the Senate a role in the Bill.

The SRC was targeted for cutting MPs’ foreign travel allowances.

The MPs also cut the Treasury’s budget by Sh1.35 billion in order to achieve the extra Sh3.3 billion demanded by senators for counties.

A mediation committee formed by the two Houses last week agreed to raise the amount of money to be given to counties from Sh283.7 billion to Sh287 billion.

The National Assembly’s Budget and Appropriation Committee was tasked to find the extra amount.

Wednesday, MPs said the Treasury, the Controller of Budget, the CRA, and the Intergovernmental Budget and Economic Council, chaired by the Deputy President, had met and agreed on the figure and the Senate had no mandate to change it.

Budget Committee chairman Mutava Musyimi beseeched the House to adopt the mediated Bill and punish the Senate for “misbehaving”.

“If some work has been done by others you (Senate) need to eat humble pie and find ways of contributing to those discussions in manners that do not set the country in a crisis like the way it is now,” said Mr Musyimi.

Majority Leader Aden Duale said the figure initially passed by the National Assembly had been agreed upon by the executive and the governors.

However, senators responded furiously, saying they would not be cowed by their colleagues’ actions.

Nyeri Senator Mutahi Kagwe, who was the vice-chairman of the mediation committee that came up with the mediated version of the Division of Revenue Bill to give counties additional funds said: “We are surprised by the decision when we were clear about where to get the money. If oversighting counties will depend on the generosity of MPs, then it is time to re-look at the Constitution.”

“So many Kenyans have sacrificed a lot, including their lives, for us to get a devolved system of government.

"Humiliating senators is a very small contribution to that struggle,” said Elgeyo-Marakwet Senator Kipchumba Murkomen.

National Assembly Speaker Justin Muturi had earlier urged the MPs to deal expeditiously with the mediated version of the Division of Revenue Bill, when it came up for consideration in the House, so as to lock the budgetary process.

“I urge you to dispense expeditiously with approval of the mediated version of the Bill, which after going through the mediation process will be presented in the House for consideration,” he said.

He said approval of the Bill would enable county governments to prepare their budgets.