National Assembly Speaker Moses Wetang'ula has called for a cost analysis of all transferred functions as one way of resolving the current impasse on revenue sharing.
With the national and county government still locked on the revenue sharing for 2024-25, he said the analysis will help establish the real cost of running counties.
This emerged at the end of the three-day Intergovernmental Relations Symposium in Naivasha organised by the Intergovernmental Relations Technical Committee (IGRTC).
Wetang'ula praised the ongoing talks chaired by Deputy President Rigathi Gachagua with view of unlocking the impasse. Governors are seeking Sh450 billion.
He said the answer to unlocking the stalemate lies in addressing the governor's call for more funding while appreciating the tight fiscal space that the country was in.
Wetang'ula said disagreement on what should be the equitable share of revenue occurs nearly every year adversely affecting county plans.
“A cost analysis of the transferred functions should be undertaken so that it is clear on what are the exact costs of running county governments,” he said.
Wetang'ula said the Council of Governors demands were based on the rising cost of inflation, high cost of running counties, enhanced NSSF, the Social Health Insurance and the Housing Levy contributions.
“The national government is also experiencing reduced revenue growth, coupled with huge expenditure incurred towards financing repayment of debts,” he said.
The Speaker challenged counties to devise new ways of raising their own source of revenue.
“Disputes between the two levels of government have often threatened to dilute the objects of devolution and always find their way in the courts of law,” Wetang'ula said.
IGRTC chairman Kithinji Kiragu called for coordination and cooperation between the two levels of government to make the exercise seamless.
He said majority of the functions have been devolved as per the Constitution and the committee will meet its deadline for the remaining functions.
“The President has given us 60 days to make sure all pending devolved functions are transferred to counties and this shall be done by the end of March,” he said.
