DEVOLUTION

Coast lobbies warn against reducing county allocation

The organisation proposed that county revenue allocation be increased to Sh488 billion

In Summary
  • She said the Sh380 billion allocation is lower than the amount allocated to counties in the 2023-24 financial year
  • The CSOs noted with concern that there has been no disbursement of any amount to the county governments, two months into the current fiscal year
Coast Civil Society Network on Human Rights led by chairman Zedekiah Adika at the Little Theatre Club on Saturday.
WARY Coast Civil Society Network on Human Rights led by chairman Zedekiah Adika at the Little Theatre Club on Saturday.
Image: JOHN CHESOLI

Civil society organisations at the Coast have warned MPs against reducing county revenue share, saying it is against the law and will cripple services.

Coast Civil Society Network for Human Rights said amendment to the Division of Revenue Act, 2024 proposes reduction of county equitable share from Sh400 billion to Sh380 billion.

The organisation proposed that county revenue allocation be increased to Sh488 billion.

Article 203 (2) of the Constitution says Parliament should calculate revenue share for counties based on the last audited accounts.

“Using the current proportion of Sh24.20 trillion, the county governments’ allocation should have been no less than Sh488 billion in the current financial year,” said Hariet Muganda, a network member.

She said section 5 (1) of the Division of Revenue Act, 2024 compels the national government to bear the burden of any shortfalls.

“In the worst case scenario, Parliament should adopt the CRA [Commission on Revenue Allocation] proposal of Sh398.14 billion as the equitable share to the county governments for current financial year,” Muganda said.

She said the Sh380 billion allocation is lower than the amount allocated to counties in the 2023-24 financial year.

The CSOs noted with concern that there has been no disbursement of any amount to the county governments, two months into the current fiscal year.

This is despite deputy president Rigathi Gachagua promising that the government will release the money in time.

Muganda said the national government should design ways of enhancing the pace of delivery of resources to the counties.

“Parliament should fast-track the process of devolving all county functions and resources as required by the constitution,” she said.

The network's chairpersn Zedekiah Adika said Kenyans are no longer asleep and lawmakers will be held accountable for the amendments.

Adika faulted MPs for ignoring CRA's recommendation of Sh396.05 that gave the devolved units an extra Sh21 billion in the financial year ending June 2025.

Adika said Kenya’s projected economic growth of five per cent means revenue received by Treasury should balloon.

“That should tell you that the counties cannot be disadvantaged on account that the Finance Bill, 2024 was set aside,” he said.

Once the monies are sent to counties, the devolved units must be accountable.

“There is no way counties can close their eyes to the fact that we had demonstrations and the national government trimmed their budget,” Adika said.

He said the devolved units should also rework their budgets and cut travel allowances.

Adika said Mombasa, Tana River and Lamu have collectively used at least Sh50 billion since election, but there are no developments to show.

“Give us the state of the county address. I wonder why the assemblies in all the three counties are silent," he said.

“The state of the county address is a report to the county assembly and also a report to the people of the counties.”

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