IBEC’S 26th resolution on both governments working on joint projects
Development priorities that have the greatest impact
The Intergovernmental Budget and Economic council (IBEC) led by Deputy President Kithure Kindiki has now resolved that the county governments will work in synergy and with the support the national government to ensure delivery in key joint projects.
The seven development priorities that have the greatest impact on the largest number of citizens include job creation locally, abroad and on digital platforms, affordable and social housing as a stimulator of various sub-sectors including manufacturing, revitalisation of agricultural value chains, infrastructure support and sector reforms especially education and health reforms.
In the communiqué of the 26th ordinary session of IBEC, it was also established that the council of governors, national treasury and commission on revenue allocation negotiate in good faith on the matter of Division of Revenue with a bid to ensure the continued support for County governments. All this, while remaining conscious of the available resources.
It also added that the process of development of the Fourth Basis for Division of Revenue Formula be undertaken in a consultative process.
Signed by Treasury Cabinet Secretary John Mbadi who also doubles as the co-chair of IBEC, and Wajir county governor Ahmed Abdullahi, who is also the chairperson of Council of Governors, it has also made clear the intention to transfer unbundled and delineated functions within one week by resolving that Intergovernmental Relations Technical Committee and the Office of the Attorney General publish the addendum to Gazette Notice No. Vol. CXVII of 13th December 2024.
Also, the fast-track implementation of County Aggregation and Industrial parks (CAIPS) will be and the disbursement framework for national Government allocations will be based on performance. The status of implementation with the remaining County Governments being included in the County Governments Additional Allocation Act for Financial Year 2024/25 that is to be republished.
It has been suggested that the Ministry of Agriculture and Livestock Development convene a summit in consultation with the CoG Committee on Agriculture within 60 days. This will bring stakeholders in the agricultural sector to develop comprehensive strategies on agricultural officers, research, soil testing, fertilizer among other things to align priorities and objectives for both levels of Government.
The DP has also been encouraged to engage Parliamentary leadership to address the stalemate arising from the stalled mediation between the National Assembly and Senate on the County Governments Additional Allocation Bill.
The Council of Governors and Controller of Budget will establish a customer desk to receive and process on behalf of County Governments any emerging issues relating to approval process for withdrawal of funds from the CGR.
Among issues tabled was the disbursement of pending December funds to county governments, which the treasury has said will happen this month and the ones for January and February will be disbursed in February, 2025.
The National Treasury will also review budgets in line with the gazetted devolved functions to ensure that national government, ministries, departments and agencies cease to hold funds for any devolved functions to ensure. Similarly, it will fast track implementation of resolutions of the 25th Ordinary session, relating to court fines, mineral royalties, library functions and construction of county headquarters.
In matters of education, all counties that have established distinct funds will continue to draw disbursements for Financial Year 2024/25. Those that have yet to, will be needed to put such funds in place or in the alternative pursue Inter-Governmental Participatory Agreements with the Ministry of Education.
The council also considered and approved the budget policy statement 2025 noting the comments of the Council of Governors for consideration.
The Council of Governors has also been tasked with committing to prioritize the payment of pending bills, salaries and pensions to ensure fiscal responsibility and operational efficiency.
The council also suggested consideration be made alongside the already approved amendments to the Public Finance Management Act 2012 to future additional allocation for Counties be incorporated as a schedule to the Allocations of Revenue Act.
IBEC is established under section 187 of the Public Finance Management Act and its role is to provide a forum for consultation and cooperation between the national government and county governments matters relating to finances and budget.
