‘Broke’ counties in plea for more money from the CRA
Elgeyo-Marakwet Governor Wisley Rotich addresses members of the Senate Committee on County Public Accounts during a committee session held at Bunge Towers in Nairobi on Monday this week. DENNIS ONSONGO | NATION
What you need to know:
- Appearing before the Senate County Public Accounts Committee that is chaired by Homa Bay Senator Moses Kajwang’, Elgeyo Marakwet Governor Wisley Rotich said his administration is facing bankruptcy because of lack of funds to run operations.
Elgeyo-Marakwet is among six counties pushing for a raise of their equitable share of revenue to at least Sh6 billion in the next financial year.
The others are West Pokot, Baringo, Samburu, Taita Taveta and Vihiga. They are among those that had been classified as “protected” due to challenges of size and representation.
Appearing before the Senate County Public Accounts Committee that is chaired by Homa Bay Senator Moses Kajwang’, Elgeyo Marakwet Governor Wisley Rotich said his administration is facing bankruptcy because of lack of funds to run operations.
He said recurrent expenditure accounts for 46 percent of the county’s budget, with the current financial year that ends in June having a resource envelope of Sh5.28 billion. Of this, Sh4.79 billion came from equitable share allocation with the remaining Sh490.2 million derived from own-source revenue (Sh180 million) and conditional grants (Sh310.2 million).
The governor said about 46 percent of the Sh3.77 billion allocated to recurrent expenditure goes towards payment of salaries and wages while Sh688.5 million is allocated to the county assembly.
There are 2,518 workers with 945 being early childhood development teachers. Mr Rotich said development was allocated Sh1.5 billion with 60 percent ring-fenced by the county assembly to fund ward projects, leaving the executive with little wiggle room.
“We are a small county and all our staff are on hardship allowances, taking Sh350 million annually from our budget,” said Governor Rotich. “This means that I will probably remain with Sh85 million to run the county government. In the next two years, we will have to cut our development budget to below 20 percent in order to stay afloat.”
The governor said the situation is why they are pushing the Commission on Revenue Allocation (CRA) to increase the county’s allocation to at least Sh6 billion.
“If you think we will misuse the funds, you can even cap recruitment so that the additional funds go directly to development. I have halted recruitment and we have only hired 20 employees this financial year,” he said.
He added that the budget challenges have seen the county government fail to operationalise an Emergency Fund.
Kisii Senator Richard Onyonka said Elgeypo Marakwet was among the counties where MCAs passed the Equitable Ward Development Act, taking away development money from the executive straight to the wards.
Saying such laws should be scrapped, Mr Onyonka warned that the devolved units that have passed them are not going to be sustainable in the long run.
“I remember in West Pokot, MCAs blackmailed the previous governor into signing into law a Bill taking development funds to the wards else he be impeached. These counties now risk grounding to a halt,” he said.
Mr Kajwang’ wondered why the county assembly is getting 14 percent of the total budget against a set ceiling of seven percent. He also pointed out that the governor only has control of about 40 percent of the annual budget to run the county government.
“We must free up funds for development. If we were to be making a viability study of Elgeyo Marakwet, then we would suggest it be folded and the neighbouring county takes over its functions,” said Mr Kajwang’.
Governor Rotich said his administration has automated revenue collection, which has seen the annual takings rise from Sh163 million to Sh270 million.
At the same time, he said his county was one of the six that had been earmarked to receive funds to put up offices but missed out on the final list.
“I am surprised that Elgeyo Marakwet did not benefit from the funds. You can bring up a motion seeking a special amount allocated to the county government towards the construction of the county headquarters,” said Senator Kajwang’.
