Deputy President Rigathi Gachagua has said the national government will transfer all outstanding devolved functions to counties within the next six months.
The DP, however, got in trouble with governors after he proposed that disbursement of equitable share of revenue be based on the absorption rate, a measure the county chiefs said was erroneous and illegal.
Mr Gachagua, who chaired the 18th ordinary session of the Intergovernmental Budget and Economic Council (Ibec) meeting yesterday, assured the Council of Governors on the commitment of President William Ruto’s administration to deal with the challenges facing the counties.
“We are concerned about the transfer of functions. President William Ruto is very committed to working with governors. We are already fast-tracking the transfer of functions and it will be over within six months,” he said at the meeting held at the Kenya School of Government.
During the session yesterday, governors also pressed the national government over the issue of pending bills.
Mr Gachagua maintained that the government would clear pending bills for counties based on their absorption rates.
“We have agreed with the governors that, even as they ask for the clearance of pending bills, we must deal with the issue of absorption rates. Counties that absorb the funds quickly will be prioritised in the clearance of pending bills,” he added.
Data from the National Treasury indicates that pending bills stand at Sh504.7 billion in the financial year ended June 2022.
Some governors, however, disagreed with Mr Gachagua.
Migori Governor Ochilo Ayacko said the stance taken by the national government does not solve the issue in the long run.
“The law requires that, when you find cash in the county, you do not just go about spending it. County assemblies need to be involved in the whole process but some of them have just started working. This is a short-term fix for the problem,” said Dr Ayacko.
Mr Gachagua said some governors had failed to work with Dr Ruto when he was chairing Ibec meetings as the DP.
“Most of the governors and other leaders were afraid of victimisation just for attending the Ibec meetings. We are very keen on working with all governor regardless of their political stance,” he said.
The Ibec discusses matters relating to budgeting, economic and financial management and integrated development at the national and county levels.
It also talks about borrowing and the framework for national government loan guarantees, criteria for guarantees and eligibility for guarantees.
Ibec, a creation of Section 187 of the Public Finance Management Act, ensures counties and the national government agree on a schedule of disbursement of equitable revenue.
The team also discusses any proposed legislation or policy which has a financial implication for the counties, or for any specific county or counties.
