The proposal to reduce the funding to the devolved units by Sh5 billion in the current fiscal year may put the national government in conflict with the Senate and the Council of Governors.
The legislators and county leaders have criticized the action, calling it unlawful and disrespectful to devolution.
The National government could be headed for a fight with the Council of Governors and the Senate over the plan to slash by Sh5 billion allocation to the devolved units in the current financial year.
The county chiefs and the lawmakers have opposed the move as unconstitutional and an affront to devolution.
“We therefore wish to state unequivocally that the council rejects this proposal in totality, and demands that the National Treasury retains the county equitable share as enumerated in the Division of Revenue Act, 2024,”CoG Chairperson Anne Waiguru stated.
The National Treasury informed Parliament of its plan to withdraw the Finance Bill, 2024, and drastically cut the budgets of the national and county governments by Sh200 billion.
After the two houses mediated, Parliament gave the devolved unit Sh400.1 billion; however, the Treasury plans to cut this to Sh395 billion, which has caused a stir.
“This unilateral decision not only undermines the spirit of devolution but also jeopardises the essential services delivered to millions of Kenyans,” Waiguru stated.
The governor of Kirinyaga claims that the constitution protects county governments from financial difficulties caused by the Kenya Revenue Authority.
Governor Anyang Nyong’o of Kisumu claimed that the cut is a plot to end devolution.
Reducing money to counties, according to him, would be a betrayal of justice for devolved governments, whose revenue share is determined by the audited national accounts.
“How can the President purport to base the failed Finance Bill on the division of revenue allocations, which are calculated on a budget of three years ago?” He queried.
Reducing county allocation, according to Nairobi Governor Johnson Sakaja, would be against the law.
He stated that the Division of Revenue Bill, which the President has already signed, cannot be changed.
The bill divides spending between the national and county governments.
“The law is very clear that where there is a shortfall, the national government will bear,” Sakaja said.
Senators, however, contended that the counties should be exempt from the Treasury’s sweeping budget cuts.
“The Sh346 billion (lost in the now withdrawn Finance Bill) out of the Sh3.9 trillion budget is nine per cent, at least at the national level. I would not wish that the same be applied to our counties, which must be on an equity basis,” he stated.
Senator Enoch Wambua of Kitui requested that rather than lowering county budgets, the state curtail government expenditures.
“There was no reason why the MPs allocated themselves Sh30 million for CDF. What for? If you multiply Sh30 million by 290 constituencies, that is Sh8.7 billion. That money should be going to counties as part of the equitable share,” he said.
Senator Mohammed Chute of Marsabit requested that the President shield and assist the counties in providing services to Kenyan citizens.
“The President should support the county governments. The county governments should also stop their excesses,” he said.
Senator Boni Khalwale of Kakamega demanded that unconstitutional offices that burden taxpayers be abolished.
The First Lady’s office, the Deputy President’s spouse, the Prime Cabinet Secretary’s spouse, and the governors’ spouses were specifically mentioned by the Senate Chief Whip.
Khalwale stated “Those are private family matters that ought never to be brought up in public.”
