EXTRA-ORDINARY

Governors in crunch meeting over transfer of functions, MES project

The two levels of government are engrossed in a dispute over some 65 functions worth more than Sh272 billion

In Summary
  • Governors have convened a crunch meeting on Friday to discuss teething devolution challenges amid battles with national government over functions and funds.
  • Council of Governors chairperson Anne Waiguru has summoned an extra-ordinary meeting of the county bosses to thrush out the issues.
Council of Governors chairperson and Kirinyaga Governor Anne Waiguru in Parliament on May 17, 2023
Council of Governors chairperson and Kirinyaga Governor Anne Waiguru in Parliament on May 17, 2023
Image: /EZEKIEL AMING'A

Governors convened a key meeting on Friday to discuss teething devolution challenges amid battles with national government over functions and funds.

Council of Governors chairperson Anne Waiguru summoned an extra-ordinary meeting of the county bosses to thrush out the issues.

The county bosses will discuss the dispute with the national government over devolved functions still being performed from the centre and the proposed allocation to counties in 2024-25.

The two levels of government are engrossed in a dispute over some 65 functions worth more than Sh272 billion.

While the governors want the functions and the accompanying budget released, some state departments have opposed the move.

Already, the state department of Devolution and the Intergovernmental Relations Technical Committee have convened a meeting in Naivasha next week to unlock the impasse.

The governors will also discuss the Managed Equipment Services  programme.

This after the Ministry of Health and a select committee of CoG recommend extension of the programme contracts by a six months. The contracts expired last month.

The move is aimed at ensuring continuity of services as the counties prepare to transition from the leasing arrangement.

The devolved units are seeking to transition from the programme that involves leasing of medical equipment to select county and national government hospitals.

In the meeting held at the Kenya School of Government last Thursday, Health CS Susan Nakhumicha and CoG select team led by Waiguru met MES vendors where they agreed to extend the contract.

“We continue to make great strides in reaching a consensus on how to handle the Managed Equipment Services with intent to ensure continuity of services,” CoG Health committee chairman Muthomi Njuki said after the meeting.

In the deal, the national government would pay for the first three months, with counties taking care of the other three months.

Thereafter, counties will be required to sign individual contracts with vendors based on their need.

In addition, the governors will discuss a proposal by Commission on Revenue Allocation to allocate the devolved units Sh398.14 billion the 2024-25 financial year.

““The allocation of Sh398.14 billion is equivalent to 23.7 per cent of the most recent audited and approved accounts,” CRA chairperson Mary Chebukati said late last year.

Sources at the CoG reveal the county bosses have rejected the proposal and would be stating their figure after the meeting.

“We maintained, resources must follow function. We cannot retain money at the centre when functions are with the counties,” the source said.

The governors also want CRA to work on the formula for sharing benefits from natural resources.

They also want the state to transfer resources for the museums and libraries functions.

“CRA committed to consider the council’s submission and respond before its finalisation,” the council said.

The lawmakers have questioned the reasoning behind CRA’s reduced allocation to the devolved units from the current year.

“What CRA has proposed for the next financial year is lower than what they proposed for this financial. What’s the reasoning and revenue collection is projected to increase?” Vihiga Senator Godfrey Osotsi posed.

CRA had proposed an allocation of Sh407 billion in shareable revenue to the counties in the current fiscal year.

“The allocation of Sh396.05 billion is equivalent to 23.7 per cent of the most recent audited and approved accounts,” Chebukati told a parliamentary committee recently.

But the figure was revised downwards after Kenya Kwanza-allied senators voted to give the counties Sh385.5 billion.

WATCH: The latest videos from the Star