Governors Push For Sh450 Billion Allocation To Sustain Devolution

 The Council of Governors (COG) now wants an equitable share allocation of Sh439.5 billion plus an additional Sh10.5 billion from the road maintenance levy fund (RLMF) to sustain devolution.

During a session with the Senate Finance and Planning Committee on Thursday, COG Chairperson Kirinyaga Governor Anne Waiguru emphasized the critical need for additional resources in the upcoming financial year to prevent the collapse of devolution.

“We need the funds for the development of health facilities upgrade. With the decline in the equitable share of revenue allocations, counties will be non-existent,” she said.

The committee, led by Mandera County Senator Ali Roba, aimed to understand the criteria for fund distribution between the National and County Governments, as outlined in the Budget Policy Statement.

In December, the Commission of Revenue Allocation (CRA) proposed a Sh398 billion allocation for counties in the 2024/2025 financial year. However, the National Treasury suggested a lower allocation of Sh391 billion, citing the need to validate expenditures continually by eliminating non-core expenditures.

Counties argue that the approved allocations, based on 13 percent of local revenue collections, fall short of the constitutional requirement of 15 percent.

“What we are saying is that the Senate needs to safeguard devolution and be the protector of devolution because if you don’t do that, we will find ourselves in very serious trouble,” Waiguru emphasized.

In their breakdown, counties seek an additional Sh5.8 billion for the Medical Equipment Service Program (MES) since the current contract is set to lapse in 2024 without corresponding allocation for its continuation.

Nairobi Governor Johnson Sakaja said devolved units aren’t seeking additional allocations, particularly in the health sector, but are required to allocate Ksh.11.75 billion for Community Health Promoters from their budgets.ADVERTISEMENT. SCROLL TO CONTINUE READING.

“We are not asking the Senate to look for money from the moon, but just to play its role in advocating properly what the Constitution provides,” Sakaja asserted.

Moreover, the introduction of new Housing Levy deductions and Social Health Insurance Fund contributions is expected to escalate Counties’ expenditures.

Tharaka Nithi Governor Muthomi Njuki urged for additional allocations to cushion unforeseen expenditures not covered in the current financial year’s budget.

“When my Kenya Kwanza coalition was campaigning, they promised that the minimum they will give devolved functions of the shareable revenue is 35%,” Njuki reminded the Senate.

Additionally, county bosses proposed the disbandment of the Kenya Roads Board and Kenya Rural Roads Authority, advocating for direct disbursement of the Roads Maintenance Levy Fund.

“There is no need for all those road agencies when the roads are in the counties. We can save on those staff and utilize those in the counties,” Waiguru suggested.

In the current financial year, devolved units received Sh385 billion, including Sh10 billion from the roads fund.

“I don’t know how effective KURRA and KRB are more than the county governments can save a lot of money. If those two institutions are disbanded, then a lot of money will be saved,” remarked Kisumu Governor Anyang Nyong’o.