Counties suffer in revenue-sharing dispute

Counties are staring at a financial crisis, with operations likely to grind to a halt, as the senators bicker over the proposed revenue-sharing formula.

For the sixth time, Jubilee and opposition senators on Tuesday failed to end the stalemate over the blueprint authored by the Commission on Revenue Allocation, even after extending their sitting well into the night.

The standoff, governors said on Thursday, has hampered services, delayed salaries and is derailing the Covid-19 fight.

This, coupled with the fact that Treasury has not disbursed the June and July allocations, means the devolved will be in bigger problems if the stalemate drags on.

Some top county officials who spoke to the Nation asked the National Treasury to release at least half of the allocations as the debate on the formula continues.

“The law provides for the release of at least 50 per cent of the money,” Nyeri Finance executive Robert Thuo said.

SH684 MILLION

He added that the county government has not paid salaries amounting to Sh350 million and owes suppliers ShSh274 million.

Meru Deputy Governor and Finance executive Titus Ntuchiu said operations have ground to a halt after Treasury failed to release Sh684 million in June.

“Without money for salaries, fuel and other costs, we will shut down. We pray that the Senate agrees on the formula next week,” Mr Ntuchiu said.

“The biggest concern is that we have no money to buy drugs. We last paid the Kenya Medical Supplies Agency in May. We need to fuel vehicles to deliver Covid-19 samples to Nairobi and for sensitisation.”

Governor Kiraitu Murungi likened the debate on the revenue formula to “cutting the legs of a tall man to make him the same height as a short one”.

Laikipia Governor Ndiritu Muriithi said he needs to settle debts amounting to Sh718 million.

“We urge the Treasury to disburse the July and August money on the basis of vote on account. Services, particularly in the health sector, should not be constrained by a debate,” Mr Muriithi said.

His Isiolo counterpart Mohamed Kuti said the county government has struck a deal with banks to give workers pay advances to be cleared when Treasury releases the money.

A doctors’ strike enters its ninth day in Kisii County. The action was occasioned by salary delays.

Families of patients admitted to public hospitals have transferred them to private ones or taken them back home.

“Employees, including Governor James Ongwae, have not received their June pay. The doctors did not even issue a strike notice,” Health executive Sarah Omache said.

County doctors’ union boss Lameck Omweri said the delay is illegal and unacceptable.

Migori Assembly Majority Leader Ken Ngoro called for the passing of the formula quickly, with Finance executive Scholastica Obiero saying the delay has greatly affected operations.

In Nakuru – one of the biggest gainers if the third basis formula is implemented – Governor Lee Kinyanjui said the standoff has derailed the county budget and that salaries would likely delay.

LOWEST AMOUNTS

“It is ironic that the greatest contributors to Kenya’s economy will receive the lowest amounts. This will lead to marginalisation of the majority. While Nakuru receives Sh5,188 per capita, Lamu gets Sh19,551,” he said.

Samburu Deputy Governor Julius Leseeto said the delay is affecting interventions put in place to fight Covid-19.

He added that the devolved government may not pay salaries on time.

In Nyandarua, Governor Francis Kimemia, whose administration has not paid July salaries, said the Treasury has not released Sh430 million for the fourth quarter of the 2019/20 financial year.

He added that Sh600.6 million was also not released to the county operative accounts of its equitable share and conditional grants.

“We exhausted the funds disbursed in the last financial year, where our absorption rate was 81 per cent. The standoff is hurting us badly,” Mr Kimemia said.

His Narok peer Samuel Tunai also expressed fear that workers’ pay would delay.  Taita-Taveta has not paid contractors and owes suppliers Sh180 million for work done especially on Covid-19 mitigation.

Lamu Deputy Governor Abdulhakim Aboud said many locals go to other counties for treatment.

Tana River Finance executive Mathew Babwoya said some projects initiated by the county government could stall and payment of bills could be suspended.

He added that the county is yet to receive Sh400 million from the Treasury.

In Kwale, which is expected to lose Sh1 billion if the formula is implemented, health, education, water and other critical services have been affected by the revenue standoff. Governor Salim Mvurya said the formula is anti-devolution.

CRIPPLED OPERATIONS

Outgoing Kakamega Finance executive Geoffrey Omulayi said the stalemate has crippled operations.

In Kisumu, the communications director at Governor Peter Anyang Nyong’o’s office Aloice Ager said the standoff has come at the wrong time, “when the country is battling Covid-19 and tough economic times”.

Payment of July salaries will delay in Vihiga, with county secretary Ezekiel Ayiego asking staff to be patient.

Elgeyo-Marakwet Finance executive Patrick Kamar said contractors and suppliers whose payments have matured but are yet to be paid have threatened to suspend their services, setting the stage for possible court cases.

“We are in a financial fix. We have not paid personal emoluments while services in almost all departments are at a standstill,” Mr Kamar said.

Nandi county secretary Francis Sang said: “We are operating with virtually no money. Our employees have gone without salaries while service providers are on our necks rightly demanding their money. The situation is bad for the growth of the local economy.”

West Pokot Governor John Lonyangapuo said the crisis has crippled projects and services in almost all departments.

“We have put on hold most projects and allocated internally generated resources to Health and Transport departments in order to win the war against coronavirus,” Prof Lonyangapuo told journalists in Kapenguria.

Baringo Finance executive Richard Rotich said a lot needs to be bought during the Covid-19 pandemic.

“We need to buy beds and protective gear but there is no money. Mobility in the county departments has been had hit since there is no fuel,” Mr Rotich said.

Bungoma Deputy Governor Charles Ngome said some contractors and suppliers have been affected by the delay in releasing the money by the National Treasury.

“Payment of salaries and services in some departments will be hard hit if the funds are not released on time,” Mr Ngome said.

By David Muchui, Regina Kinogu, James Murimi, Waweru Wairimu, Ruth Mbula, Benson Amadala, Elizabeth Ojina, Derick Luvega, Eric Matara, Steve Njuguna, Waikwa Maina, Geoffrey Ondieki, George Sayagie, Barnabas Bii, Tom Matoke, Oscar Kakai, Flora Koech, Evans Kipkura, Brian Ojamaa, Fadhili Fredrick, Stephen Oduor, Lucy Mkanyika, Charles Lwanga and Kalume Kazungu