NAIROBI, Kenya Mar 22 – County governments risk losing an estimated Sh39 billion held as conditional grants after MPs, Council of Governors, and the National Treasury once again failed to unlock the stalemate on the passage of the County Government Grants Bill.
National Treasury Cabinet Secretary Ukur Yattani said donor and development agencies had raised concerns on the delay in spending the monies after Justice Antony Makau upheld prayers by governors that the national government cannot allocate itself funds.
“We have not disbursed conditional grants this year, because of what is happening here. The development partners are very concerned because they also have their own timelines in terms of when these funds must be spent. But I was just wondering if we are trying to say we should now completely treat Conditional Grant outside the budget. How do you spend money outside the project that’s not possible so those resources what are we trying to cure,” he asked?
Laikipia Governor Ndiritu Muriithi reckoned that Parliament’s decision is in line with the High Court ruling that the Division of Revenue Act and the County Allocation of Revenue Act, 2021, shall exclude grants.
“I want to plead with the committees of Parliament why can’t we compromise and go the pragmatic way which first of all passes it as an annual. Because that clears the 39 billion that is held up right now. We are at the end of March we only have April May and 15 days of June for potential budget implementation,” Muriithi said in his plea to Mediation Committee.
The Bill was referred to the joint House mediation committee after legislators from the National Assembly and Senate expunged from the bill references to the conditional grants by donor funds citing the lack of a clear framework or special legal instrument be created for disbursement of the monies.
The Laikipia Governor reckoned that Parliament’s decision is in line with the High Court ruling that the Division of Revenue Act and the County Allocation of Revenue Act, 2021, shall exclude grants.
The court had ruled that only four items – the total sharable revenue amounting to Sh1.7 trillion, national government share (Sh1.4 trillion), the Equalisation Fund (Sh6.8 billion), and the county equitable share (Sh370 billion) – should be captured in the bill.
MPs led by co-chairs Kirinyanga Senator Charles Kibiru and Kieni MP Kanini Kega appealed with Yattani and Governors agree on an amicable way forward.
“Would really beseech you that I may be in 2 or 3 days if you are able to dispense of with this it will be much better because from next week members of Parliament, will retreat to their villages,” said Kanini.
“But once you pass it as an annual then it means that it will be difficult to change it, especially when you are going through a transition where we will lose a lot of information and history. The next House will have fairly new people who will believe that is how it should be,” Mbita MP Millie Odhiambo said.
Nominated Senator Farhiya Ali Haji added; “If this Bill is passed the way it is, it will be a clawback on devolution. We are handing the management of Financial Reporting back to the National assembly so there is no role in terms of The Senate were where should play.”
