KENYA: MPs finally agree on more money for counties

NAIROBI: The Senate struck a deal with the National Assembly on the contentious Division of Revenue Bill, which had stalled talks for close to a month.

The six-member mediation team yesterday voted four against two to reach an agreement that will see counties get additional Sh3.3 billion.

The legislators reached a consensus to forgo the Sh4.4 billion Emergency Fund Allocation - each county was to get Sh93.6 million.

The Parliamentary Budget Office advised that it contravenes Section 110 of the Public Finance Management Act, which provides that each emergency fund shall be set up by the county executive committee of finance with the approval of the respective county assembly.

The shareable revenue will increase by Sh1.8 billion, while conditional allocation was adjusted upwards by Sh1.5 billion for level five hospitals, resulting in an increment of resources for counties of Sh3.3 billion.

The Senate had made amendments to the proposed law by Sh7.7 billion, which the National Assembly rejected, leading to mediation.

REPORT ADOPTED

The Senate’s finance committee reportedly held its meeting yesterday morning and resolved to soften its stand and take the Sh3.3 billion.

The National Assembly was forced to cede ground after Ruaraka MP Tom Kajwang’, who was a House representative alongside Mutava Musyimi (Mbeere South) and Mary Emasse (Teso South), backed the Senate.

Sources privy to the closed-door deliberations said Kajwang’ differed with his colleagues on the matter.

The Senate representatives Mutahi Kagwe (Nyeri), Boni Khalwale (Kakamega) and Beatrice Elachi (Nominated) had cited frustrations from their colleagues who remained adamant and refused to consider any proposal. They said there was lack of good will on the part of their colleagues in the negotiation process.

The Senate yesterday adopted the report, even as they faulted the National Assembly over its grand standing in allocating adequate funds to counties.

The eleven level five hospitals in the counties will get more than the Sh2 billion allocated and also more money for salaries.

Elachi applauded Kajwang’ for his bold step in defending devolution and supporting additional funds to counties.

“We need to come up with mechanisms to prevent such scenarios in future. This is the third time the bicameral Parliament is having issues with the bill,” said Elachi.

In the new deal, counties will now get Sh287 billion in the next financial allocation, instead of the Sh283.7 billion proposed by the National Assembly and the Senate’s Sh291 billion.