A big clash looms between the Senate the and National Assembly over the amount of money counties should be allocated in the next financial year.
The development comes after members of the National Assembly approved a proposal by the National Treasury to give the devolved units Sh391 billion as equitable share.
The MPs approved the Division of Revenue Bill, 2024 without amendments, setting the stage for a bitter clash with their counterparts in the Senate.
In the Bill that splits revenue generated nationally between the national and county governments, the MPs gave the national government Sh2.54 trillion with counties getting Sh391.11 billion.
Some Sh7.85 billion has been allocated to Equalization Fund.
“I received the following message from the Speaker of the National Assembly regarding the passage, of the Division of Revenue Bill,2024,” Senate Speaker Amason Kingi said in a communication to the House.
“The National Assembly considered and passed the Bill on Wednesday, March 20, 2024 without amendments.”
The Bill has been introduced in the Senate for first reading and is currently being considered by the Senate Finance and Budget Committee.
The National Assembly’s passage of the Bill without amendment has set the stage for a clash with senators maintaining that they will amend the Bill and allocate the counties Sh415 billion.
While debating the Budget Policy Statement, senators said the Treasury’s proposed allocation of Sh391 billion – which has since been endorsed by the National Assembly – to counties, is a slap in the face.
“Our recommendation is that the proposed allocation of shareable revenue to county governments for 2024-25, in the considered opinion of the committee, should not be less than Sh415.9522 billion,” Senate Finance and Budget Committee chairman Ali Roba said.
He argued that the Sh391.1 billion to county governments represents an increment of a paltry Sh5.7 billion from Sh385.4 billion allocated in the Financial Year 2023-24.
“This proposed allocation represents approximately 13.2 percent of the projected ordinary revenue of Sh2.948 trillion for Financial Year 2024-25,” Roba said.
Roba spoke when he tabled the report of the committee on its consideration of the Budget Policy Statement in the debating chamber.
In its proposal to the senate, the Commission on Revenue Allocation proposed an allocation of Sh398 billion to the counties, but governors have been pushing for Sh415 billion.
Senate Majority Whip Boni Khalwale, while debating the report, persuaded the House to stand its ground and give the counties Sh415 billion.
“I foresee going forward that we will differ as two Houses on this figure. As we differ, let us defend our figure. We are not supporting the National Treasury like we did last time,” he said.
Nairobi Senator Edwin Sifuna backed the committee’s position, saying that it was high time the senate stamped its authority as the defender of counties and their governments.
“I support this proposal by our committee, that, infact, the sharable revenue to the county this year should be Sh415 billion,” he said.
Machakos Senator Kavindu Muthama said, “I agree, the counties should get the Sh415 billion without being deducted a penny. This should not be reduced.”
For his part, Nyandarua Senator John Methu persuaded his colleagues to protect counties and push as much resources as they can to the devolved units.
“I am in support of the proposal of the committee to send the Sh415 billion up from the current Sh384 billion. This will be a significant addition, which is also commensurate to transfer of services that we have been speaking about,” he said.