We have no additional Sh19 billion to give counties, says Uhuru

President Uhuru Kenyatta during a tour round the Bicdo Industrial Park before inauguration in Ruiru on July 25, 2019. He has warned that there are funds to add counties as demanded by senators and governors. [David Gichuru/Standard]

The division of revenue stalemate pitting the national government against the counties deepened yesterday after President Uhuru Kenyatta declared that the governors would have to live with the Sh316 billion the National Assembly gave them last week.

The President insisted that “the Government has no (more) money to dish out” a position that is expected to escalate the standoff that has seen governors seek redress at the Supreme Court.

The presidency, backed by the National Assembly, has over the past month been fighting a bruising Division of Revenue battle with governors and senators, who are seeking allocation of the entire Sh335 billion that the Commission on Revenue Allocation (CRA) gave the counties.

Uhuru, who broke his long silence over the matter at a funeral in Murang’a, said: “There are no funds to support the additional Sh19 billion that the governors want.” 

“I want to tell the governors and those agitating for the increase of allocation to counties that they should work with what they have. That is all that is there. The Government does not print money; we have to work with what we have,” he added.

Yesterday, the National Assembly passed its version of the Bill allocating counties Sh316 billion as their equitable share. The previous day the Senate had approved its parallel Bill that gave counties Sh335 billion.

The Bills considered by both Houses had been republished after the initial legislation collapsed after both Houses disagreed on the figures. The development in both Houses escalates the conflict.

The CRA, which is constitutionally mandated to make recommendations on the sharing of revenue between the two levels of Government, has had its proposals for county allocations consistently reduced by the National Assembly.

The National Assembly revised the amount from Sh310 billion to Sh316 billion against the Sh335.7 billion recommended by the Senate and CRA.

In this year’s budget speech, the Treasury Cabinet Secretary had announced a figure of Sh310 billion.

However, yesterday, in what appears to be the final blow to the governors and senators’ quest to have the counties’ allocation increased from Sh316 billion to Sh335 billion, Uhuru said the Government could not afford such demands. 

Speaking in Gatanga, Uhuru chided elected leaders, telling them if they wanted the allocation to be increased they “should pass a legislation to reduce their salaries to cater for the same.”

“I’m telling these elected leaders that if you want you can first reduce your salaries and benefits and we will get money to increase the allocations. But at the moment, what we have allocated is what is realistically available,” the President said.

Uhuru, who spoke during the burial of Rahab Wambui Muhuni, the mother of former Gatanga MP Peter Kenneth, challenged governors to first work with what they had before demanding more funds.

The funeral service was held at Kirwara Secondary School in Gatanga.

Affecting Kenyans

“I plead with the governors to work with what we have provided since their mandate is to work for the people. I have not talked about this issue, but I feel compelled to comment about it since it is affecting Kenyans,” Uhuru said.

“We really want counties to operate effectively, but we have allocated what we can afford. Where will we get all that they are asking for? These people are joking. Use what you have first,” he added.

The President, who was accompanied by his deputy William Ruto and Opposition leader Raila Odinga, underscored the need for county governments to deliver on their mandate without being distracted by other interests.