CRA,COG oppose slashing of counties equitable share » Capital News
NAIROBI, Kenya, Sep 6 – The Commission of Revenue Allocation (CRA) says there is no justification to reduce the equitable share for devolved units from Sh400 billion to Sh380 billion in the current financial year.
CRA Chairperson Mary Chebukati expressed that the revenue projections for the national government are expected to increase from Sh2.23 trillion in the last financial year to Sh2.6 trillion in the current financial year.
“The National Government allocation should be retained at Sh2.194 trillion as the counties get their share of shareable revenue allocation,” she told the Senate Finance Committee chaired by Mandera Senator Ali Roba.
“The national revenue is projected to increase to Sh2.602 trillion in 2024/25 therefore, the national and county governments will equitably share Sh379.12 billion and there is no justification to reduce the county allocation,” Chebukati added.
The CRA Chairperson noted that the proposed reduction in the county allocation in the Division of Revenue (Amendment) Bill 2024 would negatively affect delivery of services in the devolved units.
On their part, Council of Governors refuted proposals to reduce the equitable share from Sh400 Billion to Sh380 Billion as the government moves to cut funding allocated to several entities due to budgetary constraints.
COG Vice Chairman Ahmed Abdullahi insisted that despite the tough economic times following the withdrawal of the Finance Bill 2024 slashing the county budget by Sh20 billion is not sustainable.
The Wajir Governor implored senators to push for the counties to receive Sh400 Billion in the Division of Revenue Bill 2024 saying any budget short of the amount will adversely affect service delivery in the counties.
“The current situation does not call for any extra-constitutional or extra-legal measures such as the proposed deduction of Counties equitable share, in view of the foregoing, COG is opposed totally to the proposal to reduce allocation to counties to Sh380 billion,” Abdullahi said.
Makueni Governor Mutula Kilonzo argued that equitable share of revenue is based on the last audited accounts as approved by the National Assembly and not on projected revenue.
The Makueni Governor argued that Section 39 (3) of the Public Finance Management Act provides that the National Assembly can only amend the budget estimates of the national government and only in accordance with the Division of Revenue Act.
“Counties Equitable share has been excluded from the National Governments Appropriation and by extension the budget estimates under Article 221 (7) as it is a charge on the Consolidated Fund,” said Kilonzo.
Kakamega Governor Fernandes Barasa pointed out National Assembly has proposed further deductions on County Governments Additional Allocations on the basis of austerity measures by the government.
If approved he says it will cause further strain to the counties resources and operations following additional statutory remittances including the housing levy deductions, payment of County Health Workers.
“This proposed amendment is only hurting the Counties given that the County budgets are largely informed by the County Allocation of Revenue Act, while operations of the National government are ongoing uninterrupted,” Barasa stated.
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