MPs and senators are locked up in a battle over a move to slash over Sh15.3 billion in additional allocation to counties, with the impasse now headed for mediation.
The standoff comes after MPs voted to cut allocations to various projects being run by the counties as had been approved by senators in the County Governments Additional Allocation Bill, 2024.
However, on Wednesday, senators overwhelmingly voted to throw out the amendments to the Bill by the MPs, sending the crucial Bill to a mediation committee to find a middle ground.
The development comes after the Senate Finance and Budget committee rejected the amendments by their counterparts in the National Assembly.
Rallying his colleagues, Senate Majority Leader Aaron Cheruiyot pleaded with the senators to reject the amendments by the MPs.
“What is in question are the amendments by the National Assembly and therefore we reject them and vote No and that takes us to mediation,” said the Kericho senator.
In the contentious amendments, the National Assembly went ahead to remove the Sh10.5 billion in Road Maintenance Levy Fund (RMLF) from the additional allocations.
They also moved further to reduce funds for the Community Health Promoters (CHP), a project initiated by the national government, which was allocated Sh3.2 billion but has now been reduced by Sh660 million.
The agreement requires the national government to contribute Sh3 billion, with counties contributing the same amount to pay the allowances.
“Staff have already been recruited and have a payroll number. The Sh3.2 billion has been reduced to Sh2.58 billion. That will be able to only cater for 86,133 CHP as opposed to 107,831 that are already working in our county governments,” said Senate Finance and Budget committee chairperson Ali Roba.
The MPs also went ahead to remove Sh30.1 million in funds meant for the transfer of museum function as well as Sh7.4 million in court fines usually collected by counties.
Further, mineral royalties, which are realised funds collected on behalf of county governments amounting to Sh1.1 billion, was also struck out.
“This is supposed to be appropriated in percentages in line with the law, but it has been removed,” said the Mandera senator.
“What logical reason can we give as a Senate to rationalise the fact that money already collected on behalf of the county government by the courts has been removed?” he posed.
There is an allocation of Sh528 million that was in the previous and the current County Governments Additional Allocation Bill earmarked for completion of construction of headquarters in some five counties which has also been done away with.
“The governors had already signed and accepted they will top up whatever is missing for them to finish their county headquarters. That has now been insensitively removed, so that that project remains stalled for additional years without any consideration,” lamented Mr Roba.
The MPs have also reduced the budget for County Aggregation and Industrial Parks (CAIP) by a whopping Sh2.5 billion.
CAIPs are being established under a joint funding framework, with the national and county governments contributing Sh250 million each. The Senate allocated Sh250 million to each of the Sh47 counties.
Nairobi Senator Edwin Sifuna said the RMLF reduction is a contravention of the Constitution while also adding that funds from mineral royalties are protected by law where counties are entitled to a small percentage of the mineral wealth that is exploited in their areas.
“We as a House must in totality take the position that there is absolutely no justification for these things. As I said even during the debate on the Division of Revenue, the practice has always been that any shortfall in revenue must be borne by the national Government,” said the ODM Secretary-General.
Siaya Senator Dr Oburu Oginga added: “The deductions they have made are part of what they are calling austerity measures. These deductions are done arbitrarily without thinking of how they will affect the people at home.”
Narok Senator Ledama Olekina accused the MPs of being used to frustrate counties by denying them funds.
He said it is time for the House, when it comes to issues of resources, to stand firm and reject, in totality, the work that is done by the National Assembly.
The Senate Minority Whip said county governments are critical in the development of the country, citing the RMLF as a fund critical in development of roads in the counties.
“When it comes to the issue of revenue share, they want to reduce that and even the Division of Revenue. I have never seen a situation where we have had to talk about amendments when there is a law that is in existence. Our counties are now crying because they have no money for anything,” said Mr Olekina.
