Why counties won’t get cash tomorrow

 

Senate Speaker Ekwee Ethuro. FILE 

By GRIFFINS OMWENGA 

In Summary

• This is also when ministries, government departments and agencies close their books and send their end-year reports to the office of Controller of Budget to establish the absorption rate of funds allocated to them for the previous financial year.

Governors hoping to receive their counties’ full financial allocations Monday are in for a rude shock after the government said the earliest the funds could be disbursed is early August – and then only in tranches.

The Commission for Revenue Allocation released the allocation schedule on June 26 on how the Sh210 billion will be shared among the 47 counties. Nairobi County stands to receive the largest allocation at Sh9.9 billion and Lamu the smallest at Sh1.6 billion.

County governments are expected to make do with the last batch of Sh9.8 billion advanced to them to kick start their functions after the March 4 General Election when the devolved units came into existence.

“The counties received the last batch of monies that were allocated to them in the 2012/13 Budget almost three weeks ago, and that is expected to last them through to the end of July when they will receive part of the Sh210 billion,” said Stephen Wangaji, communications manager in the office of Controller of Budget.

And contrary to expectations, the funds will be disbursed piecemeal in line with the national government practice of allowing the budgets to be scrutinised and compiled, an exercise that is going on at the moment.

“Even if you were to offer services to the national government today when we are moving to another fiscal period, you would probably be paid after a month because that is when the various requisitions are considered and funds sent,” he said.

This is also when ministries, government departments and agencies close their books and send their end-year reports to the office of Controller of Budget to establish the absorption rate of funds allocated to them for the previous financial year.

However, county governments face a bigger problem. The Senate, which is supposed to debate and pass the County Allocation of Revenue Bill that would allow the national governemnt to allocate the funds, has yet to begin the debate, and the deadline is Monday.

The Senate says it is facing a legal dilemma after having moved to the Supreme Court to challenge the National Assembly decision to ignore their input which increased allocation to counties by Sh48 billion when passing the County Allocation of Revenue Act.

Senators fear that debating and passing the Bill could jeopardise their case in the Supreme Court.

Dr Boni Khalwale (Kakamega) said if the Senate goes ahead to pass the Bill that for now proposes dividing the Sh210 billion among the counties, then they wouldn’t be “approaching the Supreme Court with clean hands”.

“There’s the greater issue of sub-judice,” said Dr Khalwale.

The Kakamega senator also questioned the position of the Senate on the Division of Revenue Bill considering that they had proposed Sh258 billion – Sh48 billion more than what appears in the final Bill – but their proposal was ignored by both the National Assembly, and President Kenyatta.

“If we proceed, do we proceed with the Kenya National Assembly version of the Division of Revenue Bill, which was assented to, or do we proceed with the version of the Senate of Sh258 billion?” he asked.

He called on Senate Speaker Ekwee Ethuro to make a ruling on the matter so the Senate is absolved of any blame.

“If we don’t proceed, the immediate procedure is that county governments will be starved of cash, and Kenyans will ask, who do we blame? The Speaker should tell the country that the Senate is not to blame,” he added.

Dr Khalwale said the Senate will not work with the Sh210 billion figure, and even if it is forced to do so to sidestep a crisis in county budgets and county spending, then the Supreme Court will have to be told that money is not the only business; the process counts as well.

He pointed out that if the counties seek more money, but the process of approving the money is contested, then the Senate might be left out.