Treasury queries Sh238bn allocation to counties

The Treasury building in Nairobi. Officials have raised concern that the Sh238 billion allotment to the counties would disrupt operations of the central government. Photo/FILE 

By GEOFFREY IRUNGU
 

 

In Summary

• Treasury said increasing allocation to the 47 counties to Sh238 billion, meant some national functions would grind to a halt.

The Treasury has reacted sharply to a resolution by the Senate to reduce the amount of money allocated to the national government.

It said increasing allocation to the 47 counties to Sh238 billion, meant some national functions would grind to a halt.

“The Treasury would not advise that the allotment to the county governments be raised beyond Sh210 billion because this would disrupt the operations of the national government, which in itself would be against the Constitution,” said Alfred Mwenda, the National Treasury’s advisor on inter-governmental fiscal relations.

But Billow Kerrow, the Mandera County senator and chair of the Budget and Finance Committee, said the allotment of Sh238 billion was on the assumption that county governments would take up all their functions from July this year.

“The Senate considered the roles that are to be played by the county government and the budget of more than Sh1.6 trillion,” said Mr Kerrow.

The Transition Authority, the Council of Governors and the Treasury had agreed two weeks ago on the allotment of Sh210 billion, which was an increase from the original amount of Sh198.7 billion.

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Mr Kerrow said ministries should rationalise their expenditure to free money for the counties.

Mr Mwenda said the Transition Authority was in the process of determining how many counties were unable to take up all their functions from July.

“For the county governments that won’t be able to take up their roles, the funds allocated for that will revert to the national government,” said Mr Mwenda.

Governors have demanded to take up all their functions at a go despite the Constitution providing three years for the transition.

“Different counties may have different levels of preparedness to take up all their functions. The law didn’t contemplate that they would take up all the roles at once. But once the new government came into place, there was a clamour to transfer all the functions to the county governments,” said Mr Kerrow.

Mr Kerrow and Mr Mwenda were addressing a workshop on the Division of Revenue Bill hosted by the Institute of Economic Affairs (IEA) at the Sarova Stanley Hotel Wednesday.

IEA budget programme officer John Mutua said no rationale was offered in the proposal in the Bill to share out the excess revenues between county and national governments.

“Is it not better to pay public debt and reduce borrowing instead of just spending the excess revenue?” posed Mr Mutua.