Senate: Government to inherit councils’ debts to ease burden on counties

By Moses Njagih

Nairobi, Kenya: The Senate moved to ease the financial burden inherited by County governments from local authorities by passing a motion to have the National Government take over major debts that had been incurred by former councils.

Senators unanimously passed the motion urging the National Government to inherit the debts and loans that were the burden of local authorities before the establishment of County Governments, saying if the same are left to Counties they would hinder development of the devolved system.

The House resolved that as an incentive for the county governments to take off, then the National Government should take over the servicing and payments of the huge debts.

Moving the motion, Siaya Senator James Orengo said that many local authorities had huge debts that almost crippled their operations. He said County Governments will not take off unless the financial burdens are eased.

Orengo said that out of the former 175 local authority bodies, only 44 were able to pay their wage bills, because of the huge debts they had.

“It would be prudent for national government to take over these debts so that county governments are left to handle key obligations,” said Orengo.

Meru Senator Kiraitu Murungi warned that unless the counties are offloaded the burden of these liabilities, devolution would be killed in a similar manner as happened after independence.

“The system of devolution is under serious threat. We might give the county governments a still birth if we are not careful,” warned Kiraitu.

Kiraitu said that despite the promises made by President Uhuru Kenyatta to ensure that devolution works, there were forces within the Government keen on frustrating the process.

He said the Government had in the past moved to bail out institutions under the threat of going under due to heavy financial burdens.

“The Government chipped in Sh 6billion to Kenya Airways when it was on the brink of collapse, while in 2003 it bailed out the Kenya Power and Lighting Company with Sh 16billion. Time has come for the Government to come to the rescue of county governments,” said Kiraitu.

He claimed that senior civil servants employed during the tenure of the imperial presidency were still resisting devolving of powers to the county governments.

“These are the senior civil servants in the top hierarchy of the key ministries now, having been the same people who were opposing our clamour for change, it is sad that they are the ones now we expect they will help us undertake devolution,” said the Meru Senator.

An amendment moved by Kisumu Senator Anyang Nyong’o to have the debts and loans from councils audited before they are taken over by the National Government was defeated.