Kenyans across the country may soon fail to access basic services provided by the county governments despite paying taxes over revenue disbursement tussle between the national government and devolved units, the Council of Governors (CoG) has warned.
Speaking today from COG headquarters in Nairobi, the governors threatened total shutdown of all services and operations across counties over the delay by the National Treasury in releasing and disbursing county funds amounting to Sh63.6 billion for October and November 2024 allocations.
The governors, through the Council of Governors (CoG), termed the delay unacceptable.
They complained that the National Treasury is yet to disburse the monies.
According to COG chairperson Ahmed Abdullahi, counties are currently operating on a stopgap measure that provides them with 50 per cent of the equitable share based on last year’s allocation.
However, this interim arrangement is set to run out by December 2024, leaving counties at risk of a complete financial shortfall in January 2025.
“We note with great concern the delays by the Controller of Budget to approve requisitions for the withdrawal of funds. This is unacceptable to an institution that is supposed to be facilitative. We call upon the Controller of Budget to stop being a bottleneck to this process and ensure counties access their funds in a timely manner. We therefore call upon the Senate to expeditiously pass the County Allocation of Revenue Act to resolve this delay.” CoG Chairperson and Wajir governor Ahmed Abdullahi said.
The apparently agitated county bosses said that the delay in disbursing the funds to the devolved units is a contravention of the law.
“We demand that the National Treasury immediately releases the funds owed to counties, failure to which, County Governments will have no choice but shut down operations completely.” Abdullahi added.
Abdullahi who was flanked by fellow county chiefs after a meeting at the CoG offices in Nairobi said they have been closely monitoring the ongoing deliberations in Parliament over the Division of Revenue (Amendment) Bill 2024 and now wished to affirm and support the Senate for their decision to retain County Allocation at Sh400.117 billion.
“This will go a long way into the implementation of the devolved functions by the county governments.” He added. Abdullahi.
Similarly, the county chiefs expressed deep concern over the National Assembly’s reduction and the ongoing delays in the passage of the County Allocation of Revenue Bill, which has yet to be assented to despite being passed by Parliament five months ago.
Earlier, Members of the National Assembly and senators locked horns over the equitable revenue share to devolved units.
MPs voted for the counties to receive an allocation of Sh380 billion as proposed by the National Treasury with the latter citing fiscal deficit challenges following the withdrawal of the Finance Bill 2024, a revenue raising bill.
The standoff which is in mediation threatens to delay the passage of the revised Division of Revenue Bill 2024, which splits nationally generated funds between the national and county governments.
On the matter of the Division of Revenue (Amendment) Bill, 2024 (DORA) and Enactment of the County Allocation of Revenue Bill (CARB), the county chiefs said that more than five months into the Financial Year 2024/25, the County Allocation of Revenue Act has not been assented to despite the Bill being passed by both houses of Parliament.
