Governors protest against ‘low’ funds allocation

Governors have expressed dismay at the “low” allocations to counties and high borrowing by the national government to finance the Budget.

Council of Governors Chairman Peter Munya on Thursday said resources allocated to counties had gone down from 33 per cent of shareable revenue in the 2014/2015 and 2015/2016 financial years to 31 per cent this year.

“Whereas the allocation for the national government has increased, that of devolved governments has reduced in terms of percentage,” Mr Munya told the Daily Nation by phone.

“This is happening when new functions have been devolved.”

He added: “It is sad that low allocations to counties are coming when we should be having fully functional devolved governments.”

On Tuesday, senators passed a Bill paving the way for counties to access Sh302 billion in the next financial year. The Bill is to be forwarded to the National Assembly.

From the Sh302 billion, counties are to share Sh280 billion while the remainder would be released as condition grants on request by a devolved government.

Treasury Cabinet Secretary Henry Rotich read the Sh2.26 trillion budget on Wednesday, with a projected revenue collection of Sh1.5 trillion and a Sh760 million deficit

“The allocations give credence to our push for the Constitution to fix the percentage of resources that should be devolved,” Mr Munya added.

He insisted that 45 per cent of national revenue should go to counties.

The Meru governor also took issue with senators for agreeing to the Sh302 billion proposal by the Commission on Revenue Allocation “without a single amendment”.

He accused the Senate of passing Bills “only aimed at killing devolution”.

“Nothing positive comes from the Senate as far as protecting devolved governments is concerned. In fact, no changes were made to the CRA proposals so that individual senators could be given money for oversight,” Mr Munya said.

He added that money for rural electrification, water and health should go to counties as the functions were devolved and that the national government should only concentrate on strategic programmes.

Mr Munya said the money allocated to devolved governments “is a drop in the ocean” compared to more than Sh770 billion that the national government was borrowing.

“The borrowing is eating into money meant for counties,” the CoG chairman added.