Amid accusations of being under too much control by the Executive, senators are pushing for the National Treasury to decentralise its services.
This latest development follows lawmakers' accusations that the entity works at the whim of the national government, to the detriment of county governments.
Addressing the issue, Busia Senator Okiya Omtatah said that, as a ministry under the national government, the National Treasury is essentially a cash box for the President.
He added that the Head of State exercises absolute control over the National Treasury, as both the cabinet secretary and the principal secretary are appointees of the President.
“We must take the National Treasury away from the Executive. The National Treasury cannot be a ministry of the national government. It must be an independent organ serving the 48 governments. It must also devolve,” said Mr Omtatah.
“We must create an independent National Treasury as anticipated, have an independent Treasurer – a professional who has security of tenure, is competitively recruited and cannot be fired.”
The first-term senator pointed out that Section 11 of the Public Finance Management Act designates the National Treasury as an entity of the national government, essentially turning it into a cash box for the Head of State.
“We must amend or get rid of such laws which make the National Treasury basically a cash box for the President. Because the President controls the minister and the Principal Secretary, therefore, you depend on the President to have money delivered to counties,” Mr Omtatah said.
The National Treasury Building in Nairobi.
Photo credit: Pool
The legislator said the current problem with the National Treasury is a design problem, arguing that the Constitution never anticipated or expected that the National Treasury would be a ministry of the national government.
“The National Treasury was supposed to be autonomous for it to serve all the 48 governments – the national government and the 47 county governments – equitably and equally,” Senator Omtatah.
“Article 225 of the Constitution, which sets up the National Treasury, did not anticipate it would be part of the national government and be headed by a Cabinet Secretary and a Principal Secretary, appointed by the President, and who serve at the pleasure of the President and have no security of tenure.”
Vihiga Senator Godfrey Osotsi said there is a need for a full department in the Treasury that is going to deal with the county governments.
“What is there now is a National Treasury that is working at the whims of the executive, the national government. They do not care about county governments,” said the ODM deputy party leader.
The renewed push comes at a time when devolved units continue to experience undue delays in monthly release of Sh415 billion equitable revenue share meant for counties.
This is despite President William Ruto vowing to put an end to undue delays in release of funds to counties, a problem that characterised the tenure of his predecessor.
Senators are now accusing his administration of playing lip service with the National Treasury, starving counties of cash and leading to governors resorting to expensive commercial loans to keep counties running.
Mombasa Senator Mohamed Faki accused the John Mbadi-led Treasury of non-adherence to the approved disbursement schedule approved by the Senate, guiding the timely release of the funds.
He said that instead of the Treasury releasing funds not later than the 15th day of every month as is in law, the Exchequer insists that the monthly transfers shall be based on the performance of the revenue raised by the national government.
The development, Senator Faki said, is a clear escape route to continue the unusual underfunding of the counties within the required time of the year.
“You have heard the President say that he has given counties money. How? Whose money can he give to counties? He cannot give counties money. We must get the institution right,” said Mr Omtatah.
