The National government could be headed for a fight with the Council of Governors and the Senate over the plan to slash by Sh5 billion allocation to the devolved units in the current financial year.
The county chiefs and the lawmakers have opposed the move as unconstitutional and an affront to devolution.
“We therefore wish to state unequivocally that the council rejects this proposal in totality, and demands that the National Treasury retains the county equitable share as enumerated in the Division of Revenue Act, 2024,” CoG chairperson Anne Waiguru said.
The National Treasury has informed Parliament about its intention to radically trim both national and county government budgets by Sh200 billion with the withdrawal of the Finance Bill, 2024.
Parliament allocated the devolved unit Sh400.1 billion following mediation between the two houses, but the Treasury intends to reduce this to Sh395 billion, triggering an uproar.
“This unilateral decision not only undermines the spirit of devolution but also jeopardises the essential services delivered to millions of Kenyans,” Waiguru said.
According to the Kirinyaga governor, the constitution provides that the county governments do not suffer in the event of cash flow challenges by the Kenya Revenue Authority.
Kisumu Governor Anyang Nyong'o said the reduction is a scheme to kill devolution.
He said any reduced funding to counties would amount to a travesty of justice on devolved governments whose share of revenue is based on the audited national accounts.
"How can the President purport to base the failed Finance Bill on the division of revenue allocations, which are calculated on a budget of three years ago?" he asked.
Nairobi Governor Johnson Sakaja said reducing county allocation would be a breach of the law.
He said no amendment can be made to the Division of Revenue Bill which has already been signed by the President.
The Bill splits the spending between the national and county governments.
“The law is very clear that where there is a shortfall, the national government will bear,” Sakaja told the Star.
Senators, on the other hand, said the Treasury’s sweeping budget cuts should not apply to the counties.
“The Sh346 billion (lost in the now withdrawn Finance Bill) out of the Sh3.9 trillion budget is nine per cent, at least at the national level. I would not wish that the same be applied to our counties, which must be on an equity basis,” he said.
Kitui Senator Enoch Wambua asked the state to cut down the government excesses instead of reducing the budget for counties.
“There was no reason why the MPs allocated themselves Sh30 million for CDF. What for? If you multiply Sh30 million by 290 constituencies, that is Sh8.7 billion. That money should be going to counties as part of the equitable share,” he said.
Marsabit Senator Mohammed Chute asked the President to protect and support the counties to deliver services to Kenyans.
“The President should support the county governments. The county governments should also stop their excesses,” he said.
Kakamega Senator Boni Khalwale called for the abolition of unconstitutional offices that are a burden to taxpayers.
The Senate Chief Whip singled out offices of the First Lady, Spouse of the Deputy President, Spouse of the Prime Cabinet Secretary and governor spouses.
“Those are private family issues that should never be brought to the public,” Khalwale said.