Counties are staring at totally missing out on up to Sh50.5 billion in conditional additional allocations after senators approved a different amount from MPs as funds due to the devolved units, setting the stage for another stalemate.
The development comes at a time when only three months remain until the end of the current financial year ending June 30, 2025.
Even though the legislators agreed to put aside the contentious Road Maintenance Levy Fund (RMLF), which governors and MPs are fighting over, until a court case is determined, the new bone of contention is on how much money should go to counties as conditional allocations for the current fiscal year.
While MPs pegged the total purse at Sh25.3 billion when they passed the County Additional Allocation Bill (CAAB), 2025 two weeks ago, senators have their figure at Sh50.5 billion, resulting in a gap of now at over Sh25.2 billion.
The Senate wants Sh35.65 billion to be disbursed to the 47 counties as conditional additional allocations from loans or grants from development partners.
On the other hand, however, the National Assembly has pegged the figure at Sh17.36 billion.
For allocation to the county aggregation and industrial parks (CAIPs) project, senators have the figure at Sh2 billion while MPs’ figure is Sh2.85 billion.
The difference in the two is informed by some Sh523.1 million which senators have set aside for the completion of county headquarters in five counties of Lamu, Isiolo, Tana River, Tharaka Nithi and Nyandarua; an allocation which MPs have taken to the CAIPs project.
For conditional additional allocations to counties from the national government’s share of revenue, senators have pegged it at Sh7.54 billion while MPs have it at Sh7.84 billion.
The legislators, however, agree that Sh3.23 billion should go towards community health promoters, Sh1.759 billion for payment of salary arrears for county government health workers and Sh116 million as court fines.
Both Houses are on recess until next month, with the Senate convening a special sitting in a bid to pass the CAAB, 2025, to pave the way for the disbursement of the billions.
Narok Senator Ledama Olekina acknowledged the existence of a problem, saying the National Assembly has come up with its own version of the Bill, different from the one before the Senate.
He said a common ground must be found, and it is only then that money will be withdrawn from the Consolidated Fund and deposited into the County Revenue Fund for counties use.
“We have a serious problem. This is a crisis. Right now, our counties will not be receiving the money because of the bickering between the two Houses,” said the Senate Minority Whip.
Meru Senator Kathuri Murungi said the National Assembly should stop derailing devolution, saying that even if a common was to be found, the disbursement will be towards the tail end of the fiscal year, denying the counties the chance to absorb the funds to the benefit of the people.
“Let it go on record that the greatest enemies of devolution in this country are the National Assembly. The best way to kill counties is to deny them funds,” said Kitui Senator Enoch Wambua.
Kakamega Senator Boni Khalwale said the Senate Finance and Budget committee, in its report to the House, agreed to do away with the RMLF allocation of Sh10.5 billion in order to pave the way for counties to receive the long overdue funds.
“We removed from the Bill any mention of that RMLF until the courts have made a decision because of subjudice. We have put it away completely to remain with the other schedules,” said the Senate Majority Whip.
“We are at a place where we have to speak to the soul of the nation and realise that this country will succeed or fail depending on us. We just passed this Bill today and counties will access a staggering Sh50.5 billion,” he added.
Senate Majority Leader Aaron Cheruiyot said the funds should have been disbursed to counties, and it is an embarrassment that it has taken that long to have an agreement on the Bill with some Sh50.5 billion at stake.
“It is a very untidy situation, and I hope this never happens again. I don’t recall ever moving a Bill for monies to counties this late. By July 1, 2024, counties should have received the funds as the Constitution envisions a timely release of funds to counties,” said the Kericho senator.
Kirinyaga Senator James Murango castigated MPs as the biggest enemies of devolution, saying the resources meant for counties have been delayed because of a baseless standoff.
“There was no reason at all to delay paying salaries, especially to the health workers in our counties. “The MPs think the money goes to senators but to Kenyans,” he said.
Nairobi Senator Edwin Sifuna said counties have been kept waiting for the funds for a long time because of a dispute between leaders, yet the money is needed to support healthcare in the counties, especially at a time when the US has frozen health aid to Kenya.
“We are not enemies of MPs, but we have an oath that we swore to defend counties. There doesn’t exist a Kenyan who belongs to the national government or the county government. As leaders, we should not have a situation where a standoff between governors and MPs results in such a situation,” said the ODM Secretary-General.
