Counties warn of shutdown in revenue row

Kakamega Governor Wycliffe Oparanya. FILE PHOTO | NATION MEDIA GROUP

What you need to know:

  • The Nation Assembly and the Senate have long disagreed on the crucial Division of Revenue bill that allocates funds to the two levels of government.

  • Whereas the National Assembly has proposed that counties get Sh316 billion, the Senate wants them allocated Sh335 billion.

Governors will shutdown counties next month if the Division of Revenue bill impasse is not resolved, Kakamega County boss Wycliffe Oparanya announced Thursday.

Mr Oparanya, who is also the chairman of Council of Governors, said the counties are struggling to pay salaries of their employees.

He said all operations in all counties will be stopped on September 16, 2019.

"Beyond this date, if the matter is not resolved the county governments will have no option but to shut down," Mr Oparanya said.

Last week, Attorney-General Kihara Kariuki advised the Senate to seek out the National Assembly and record a settlement that will see Treasury release funds to counties.

The two Houses have long disagreed on the crucial Division of Revenue bill that allocates funds to the two levels of government.

Whereas the National Assembly has proposed that counties get Sh316 billion, the Senate wants them allocated Sh335 billion.

The Division of Revenue bill is the legal instrument that divides revenue between the two levels of government.

It is only after its enactment that counties can prepare budgets and appropriation bills which authorise withdrawals from County Revenue Funds once enacted.