Governors demand changes in Revenue Bill

Council of Governors Chairman Josphat Nanok addresses the press at Delta House, Nairobi, on March 8, 2018. Governors want changes made in cash Bill. PHOTO | MARTIN MUKANGU | NATION MEIDIA GROUP

What you need to know:

  • The Revenue Bill is the annual law passed by Parliament for the sharing of funds between the national government and the counties.
  • The Bill is in the Senate and is on track for approval in Parliament before the end of the financial year.
  • According to the Bill, devolved units will receive Sh8.3 billion, which is 15 per cent of the levy fund.

Governors are demanding the inclusion of conditional grants and donor cash for development projects in the Division of Revenue Bill, which has been approved by the National Assembly.

Council of Governors chairman Josphat Nanok said on Tuesday they have reviewed the Bill and made recommendations to the Senate to include grants worth Sh1.5 billion from the Global Fund, which exclusively finances programmes on malaria, HIV and tuberculosis. 

The funds pass through the national government, which acts as the principal recipient, to the Ministry of Health for allocation to counties.

The Bill has itemized conditional allocations for leasing medical equipment — from Sh4 billion to Sh9 billion. The governors however said they are not privy to any agreements on the funds.

SENATE

The Revenue Bill is the annual law passed by Parliament for the sharing of funds between the national government and the counties.

The Bill is in the Senate and is on track for approval in Parliament before the end of the financial year.

Mr Nanok, who is also the Turkana Governor, pointed out that Sh1.8 billion from the Agricultural Sector Development Programme was also not provided for in the Bill.

He asked the Senate to reject the Bill over its failure to raise the allocation for the Road Maintenance Fuel Levy Fund from 15 to 19 per cent.

DEVOLVED UNITS

According to the Bill, devolved units will receive Sh8.3 billion, which is 15 per cent of the levy fund.

The increment to close to 20 per cent was agreed on at a meeting of the Intergovernmental Budget and Economic Council chaired by Deputy President William Ruto.

Mr Nanok said the council’s recommendations have been sent to the Senate’s Finance & Budget Committee.

“The Council recommends that the Senate spearheads legislative amendments of the Intergovernmental Relations Act to safeguard intergovernmental agreements and to fast-track the disbursements of county funds,” Mr Nanok said in a statement after an Extra Ordinary meeting of the council in Nairobi on Tuesday.