Lawmakers' standoff over county funding persists as talks stall

Mediation Committee on Division of Revenue (Amendment) Bill, led by co-chairs Ndindi Nyoro and Ali Roba consult during the Committee meeting at Bunge Tower, Nairobi on November 12, 2024. [Boniface Okendo, Standard]

The stalemate between the Senate and the National Assembly over whether counties should receive Sh400 billion or Sh380 billion from the exchequer has yet to be resolved, with both houses sticking to their positions.

The Mediation Committee, which includes members from both the Senate and the National Assembly, held its second meeting in Nairobi yesterday but failed to resolve the impasse.

The matter is likely to paralyse operations in the 47 county governments, which have yet to receive their financial allocations.

Senators are insisting that the Sh400 billion agreed upon during the last mediation in May be maintained, while Members of the National Assembly are in agreement with President William Ruto’s memorandum to Parliament, which recommended Sh380 billion and which they passed.

National Assembly Budget Committee Chairman Ndindi Nyoro and Senate Finance Committee Chairman Ali Roba, who co-chair the Mediation Committee, have called on legislators to propose solutions that are acceptable and can be approved by both houses of Parliament to resolve the crisis.

“This is unprecedented; we have never seen a situation where county funds have been reduced, as in the past, they have been increased. What we are doing today is very important, as it will set a precedent for how a similar matter will be handled in the future. That is why I am calling on members to be objective,” said Nyoro.

The Kiharu MP reiterated that all legislators support devolution and that the only reason this process seems to be stalling is that other key stakeholders, including governors and other players in devolution, are not involved.

He added that they are committed to finding a solution that is beneficial for the country.

Nyoro also told the meeting that the failure to meet revenue targets led to the National Assembly agreeing to a reduction of Sh10 billion from the National Government Constituency Development Fund, a step that has never been taken before. He described this as a demonstration of magnanimity in light of the situation in the country.

He pointed out that even if the process stalls, the Sh400 billion figure may not be a fallback as expected, and that there is a chain of events and legal implications in whatever decision is made. He stressed that the underlying issues must not be overlooked.

“I want us to sincerely find a solution so that the report I will table before the National Assembly is acceptable and counties can receive their funds to discharge their mandate as stipulated in the Constitution of Kenya.

‘‘I would like to inform our colleagues in the Senate that we are not against counties receiving more funds, but we must consider the current situation in the country,” said Nyoro.

Roba asked members to deliberate on whether the situation in the country is catastrophic enough to warrant a drastic reduction in allocation to the counties, suggesting that the country had suffered a short political setback.

He urged colleagues to consider the revenue shortfall that has led to the reductions experienced by the counties.

“The current crisis is being driven by the politics of the Roads Maintenance Levy Fund, in which the Council of Governors went to court. I would like to inform our colleagues in the National Assembly that Senators are committed to resolving this issue, but we are not in a position to engage with the Governors on this matter, as they are suggesting because we are not their darlings,” said Roba.

Rarieda MP Otiende Amollo argued that the best way to handle the matter would be to agree on the Sh380 billion, then go to the National Assembly and make adjustments to override the presidential veto by a two-thirds vote.

He stated that they should have consulted the Council of Governors beforehand to understand exactly what they wanted.

Amollo said that in law there are no strict answers unless the court provides a ruling.