Senators lock horns with MPs over Sh800 million equalisation fund reduction
The Senate Ad hoc Committee investigating the Shakahola deaths during the session at Parliament buildings Nairobi on Friday, June 9, 2023. The committee is led by Tana River Senator Danson Mungatana.
Senators are protesting a proposed reduction of Sh800 million on funds meant for marginalised regions in the country by their National Assembly counterparts.
The standoff comes after Members of Parliament (MPs) approved the reduction of the equalisation fund from Sh10.8 billion passed by the Senate to Sh10 billion during the consideration of the Equalisation Appropriation Bill 2023.
The National Assembly considered and passed the Bill in June approving the same with amendments with the major one being the Sh790 million reduction.
However, senators have now called for the rejection of the amendments by their counterparts sticking to the Sh10.8 billion figure for the financial year ending June 30, 2024.
Senate Finance Committee vice chairperson Tabitha Mutinda said the committee noted a routine tendency to reduce allocations to the fund by the National Assembly through amendments aimed at undermining devolution.
She argued that the Sh10.8 billion had already been allocated and all that remained was appropriation and timely disbursement, which has not been adhered to.
The legislator said the National Treasury had committed to the committee that the amount would be allocated in the supplementary budget for the just ended financial year but that was not done.
“As we have also seen in the Division of Revenue, the National Assembly has always alluded to and executed reductions of funds that the Senate does allocate. This Equalisation Fund has been affected by the same. There has been massive reduction,” said Ms Mutinda.
“Since this had been approved, all that was needed was appropriation and timely disbursement, but this has not been adhered to. There have been reductions with the amendments by the National Assembly,” she added.
Kakamega Senator Boni Khalwale called on his counterparts to reject attempts by MPs to reduce the money, saying it is a deliberate attempt to water down the intention of the Fund.
Reject changes
“I strongly request colleagues in this House to reject the attempt by the National Assembly to reduce the money that was meant for equalisation to any other figure. I support that we should reject this deliberate effort to water down the intention of the Equalisation Fund,” said the Senate Majority Whip.
Homa Bay Senator Moses Kajwang’ said he cannot agree with the National Assembly amendments as it will mean abdicating his role as a representative of the people.
“I cannot support that proposal by the National Assembly because Homa Bay County was meant to get Sh138 million. If we go with the National Assembly's proposal, Homa Bay loses Sh10 million. This money must go to Homa Bay in full as approved by the Senate,” he said.
“I agree with our committee that this reduction is not justified. Much as we are down in the Finance Bill 2022/2023 and 2023/2024, this reduction is too drastic unless we sit in a mediation committee and agree and it is demonstrated to us as a House, why specifically the equalisation fund,” added Majority Leader Aaron Cheruiyot.
He said that from the Sh64 billion due to the marginalised areas, only a paltry Sh13.6 billion has been disbursed.
“We are still short by Sh48 billion even without the reduction. Therefore, to reduce it even further does not solve our problem,” said the Kericho senator.
Narok Senator Ledama Olekina said the Constitution determines how much money is to be set aside to uplift the living standards of the people who live in different pockets of the country and who have been left behind by any other form of development.
The budgetary reduction was affected during the supplementary estimates for the financial year ending June 30, 2024 due to the significant delay in the passage of the Equalization Fund Appropriation Bill into law.
“On our side as the Senate, we have ensured that we have done timely approval and passage of the same Bills after concurrence. Nonetheless, there has been a delay, which now affected this appropriation,” said Ms Mutinda.
The lawmaker said Sh62.4 billion has been due to the Fund since its inception. However, there have been arrears because the only disbursement that has been done is Sh22.4 billion resulting in arrears of Sh48.8 billion.
She said National Treasury Cabinet Secretary John Mbadi had committed to clear the arrears.
“He gave his word that these funds would be disbursed on time. We did our due diligence as required, but to our disappointment, this had never been effected,” she said.
Nandi Senator Samson Cherargei said when Parliament appropriates money, it should be disbursed henceforth.
“That money is not for office expenses. It is meant for the establishment of dispensaries in Murang’a, Migori and Nandi counties. It should be used for electricity and roads among other basics,” he said.
