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Raila sides with counties in funding row

African Union Commission chairmanship candidate Raila Odinga.

Photo credit: File | Nairobi Media Group

What you need to know:

  • Senators want counties to be given Sh400 billion while the National Assembly insists on Sh380 billion.
  • The stalemate over the Sh20 billion difference persists, even after an 18-member Mediation Committee with an equal membership from the two Houses was constituted.

Orange Democratic Movement (ODM) leader Raila Odinga has sided with the Senate in demanding Sh400 billion for counties, accusing the National Assembly of frustrating devolution.

The National Assembly and the Senate are in a standoff over shareable revenue for the counties.

Senators want counties to be given Sh400 billion while the National Assembly insists on Sh380 billion.

The stalemate over the Sh20 billion difference persists, even after an 18-member Mediation Committee with an equal membership from the two Houses was constituted.

Mr Odinga said it is surprising that the National Assembly is pushing to lower the amount to be shared to counties, describing the move as “slow but steady strangulation and eventual killing of devolution”.

He cited the law providing that counties get at least 15 per cent of the national government revenue. Mr Odinga said the Sh400 billion proposed by the Senate is 15 per cent of the national revenue.

“The standoff and attempts to tamper with allocations are a dangerous backward march. I urge MPs to be enablers of devolution and refuse to be in partnership with those determined to frustrate and kill it,” Mr Odinga told journalists at his Capitol Hill office in Nairobi yesterday.

'Greedy'

He said Members of the National Assembly are “greedy”, citing their attempt to control allocations for counties while at the same time scheming for more funds to be under their watch.

Mr Odinga said apart from controlling the National Government Constituency Development Fund (NG-CDF) and the National Affirmative Action Fund, the MPs are scheming to be in charge of the Road Maintenance Levy Fund.

He accused the National Assembly of entrenching an anomaly where it conceives, implements and oversees projects at the same time.

“The execution of programmes has never been and can never be the job of MPs. That can create an accountability crisis in governance, to the detriment of all,” he said.

He added that it is embarrassing that some of the MPs are contractors in projects funded by NG-CDF.

“The hidden reality, however, is that it is about a power grab and an assault to the Constitution,” the ODM leader said.

“Parliament makes laws and ensures the laws are implemented and followed. It is against this backdrop that I find the standoff between our two Houses of Parliament over division of revenue scary, unhelpful and unnecessary.

"The Constitution we promulgated in 2010 guides the way the government and our country works.”

'Stalled operations'

He said the stalemate is threatening to bring operations and services in counties at a standstill, adding that devolved governments are strained financially.

“The National Assembly is doing all it can to reduce revenue allocation to counties, in complete disregard of the Constitution and recommendations of the Senate. This is not only illegal and unconstitutional, it also sets a dangerous precedent which, if allowed to stand, will lead to a slow but steady strangulation and eventual killing of counties,” he said.

Council of Governors Chairman Ahmed Abdullahi said on Thursday that the impasse continues to hurt counties, with operations being in limbo as funding by the national government delays.

“Counties are unable to make decisions. They cannot finalise their budgeting on account of failure to have in place a County Allocation Revenue Act,” the Wajir governor said.

“Our reading of the law as told by experts is that it is illegal and unconstitutional to finalise appropriation for either level of government without agreement on the Division of Revenue Act.”

The Saturday Nation has learnt of underlying issues that may prolong the committee co-chaired by Kiharu MP Ndindi Nyoro and Mandera Senator Ali Roba.

The committee is toying with the idea of inviting the National Treasury and the Council of Governors in a bid to try and strike a deal.