Deputy President Kithure Kindiki chairs the 26th IBEC Ordinary Session in Nairobi on January 27, 2025.Deputy President Kithure Kindiki chaired the 26th Intergovernmental Budget and Economic Council (IBEC) Ordinary Session at the Official Residence in Karen on Monday.
The session reaffirmed the commitment to uphold and strengthen intergovernmental relations in fiscal space essential for collective action among the two levels of government.
The 26th IBEC meeting resolved that the county governments should work with and support the national government in delivering key joint government projects in the seven development priorities.
The projects include creation locally, abroad and on digital platforms; affordable and social housing as a stimulator of various other sub-sectors, including manufacturing; training opportunities and direct/indirect jobs and revitalisation of agricultural value chains among others.
They also resolved that the Intergovernmental Relations Technical Committee and the Office of the Attorney General publish the addendum to Gazette Notice No. Vol. CXXVI of 13th December 2024 on the transfer of unbundled and delineated functions within one week.
“That the Council of Governors, National Treasury and the Commission on Revenue Allocation negotiate in good faith on the matter of division of revenue with a bid to ensuring the continued support for county Governments while remaining conscious of the available resources,” a joint statement from the read.
“Further, the process of development of the Fourth Basis for Division of Revenue Formula is undertaken in a consultative process.”
The leaders also resolved that the Fastrack implementation of County Aggregation and Industrial Parks (CAIPS) and the disbursement framework for national government allocations be based on performance and the status of implementation, with the remaining county governments being included in the County Governments Additional Allocation Act for FY24/25 that is to be republished.
They also agreed that the Ministry of Agriculture and Livestock Development convene a summit in consultation with the CoG Committee on Agriculture within 60 days.
The summit that will bring together all stakeholders in the agriculture sector aims to develop comprehensive strategies on agricultural extension and production support; including agricultural extension officers, research, soil testing, fertilizer, curriculum, livestock management, etc to align priorities and objectives for both levels of government.
“The Council considered and approved the Budget Policy Statement 2025, noting the comments of the Council of Governors for consideration,” the statement read.
They also resolved that the Deputy President engage the parliamentary leadership to address the stalemate arising from the stalled mediation between the National Assembly and Senate on the County Governments Additional Allocation Bill.
Further, a consideration should be made alongside the already approved amendments to the Public Finance Management Act 2012, to future additional allocation for counties to be incorporated as a schedule to the County Allocations of Revenue Act.
“The county Governments commit to prioritizing the payment of pending bills, salaries, and pensions to ensure fiscal responsibility and operational efficiency.”
With regards to education support by county Governments, they resolved that all counties that have established distinct funds continue to draw disbursements for FY24/25.
They also resolved that the Council of Governors and Controller of Budget establish a customer desk to receive and process on behalf of county governments any emerging issues related to the approval process for withdrawal of funds from the CRF.
The National Treasury committed to disburse pending December disbursements to county Governments in January 2025 and to disburse January and February allocations within February 2025 and monthly thereafter.
The National Treasury reviewed the budgets in line with the gazette devolved functions to ensure that national government ministries, departments and agencies cease to hold funds for any devolved functions, and similarly fastrack implementation of resolutions of the 25th Ordinary session relating to court fines, mineral royalties, library functions and construction of county headquarters.
