Counties will crush, we need more revenue allocation
NAIROBI, Kenya, Apr 23 – County Bosses have sustained the push for allocation of Sh450 billion as revenue share for the next financial year failure to which devolved units will shut due to financial crisis.
Council of Governors Chair Anne Waiguru explained that with increased provision of taxes which include the housing levy and Social Health Insurance Fund (SHIF) the push to revise the equitable share upwards is key.
The Kirinyanga Governor was making the submission before the Senate Finance Committee where she insisted devolution will face a crisis due to the increasing wage bill.
“We are not asking for a favor; we are asking to be given our fair share just paying the new taxes will increase the wage bill. Please give us what we are asking for us to break even and stay afloat,” Waiguru stated.
The 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.
Governor Waiguru told the Mandera Senator Ali Roba led committee that projections show that the new Housing Levy deductions will increase the wage bill with Sh 4Billion.
The COG Chair added that the new National Social Security Fund will cost devolved units Ksh.3Billion.
The Kirinyanga Governor emphasized that counties are set to face increased pending bills if their plea is not considered questioning why monies were being retained at the National Government despite devolved functions.
“I think what this boils down to is do we believe in devolution or not, do we need to have counties or not. We are not asking for money to spend on unnecessary things, we are asking for money to spend on basic stuff,” Waiguru said.
Nyeri Governor Mutahi Kahiga decried that meeting the demands of the increasing workforce especially in the health sector who are aimed at supporting the Universal Health Coverage (UHC) will be untenable with the proposed revenue allocation.
“The health function is operating with less than 48 percent and one of the reasons the doctors are in the streets is because they are demanding additional workforce but we have no money,” Kahiga stated.
Tharaka Nithi Governor Muthomi Njuki warned that the commitments on the ongoing talks between the Kenya Medical Pharmacist and Dentist Union (KMPDU), the Council of Governors and the National Government are untenable.
Governor Njuki who also chairperson of the Health committee faulted the National Assembly for promising to push additional funds to counties yet they only passed Sh 391Billion allocation.
“I want to look doctors straight in the eye and tell them that if we don’t get this money, we will be lying to them even if we signed a new CBA, we won’t be able to pay them as counties,” he said.
COG vice chair Ahmed Abdullahi castigated the National Treasury for using the wrong financial base to allocate funds to counties in the current financial year.
“How do we give counties Sh 6B out of the increase of 376B, knowing the functions that have been devolved? that’s unfair,its only 1.5 percent,” he said.
The House committee promised to increase the revenue upwards from the proposed Sh 391Billion in the considered and passed Division of Revenue Allocation Bill before the National Assembly.
“Whereas the difference of what is in the bill and what you have proposed is huge, I think it’s rational, the Senate will do it’s bit, I can’t guarantee you that you will get what you are asking for but we will fight to give you more money,” said Senator Roba.
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.
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