Finance committee backs CRA's move to set budget limits for counties

Kenya: Senators have backed the Commission on Revenue Allocation's (CRA) recommendations setting budget ceilings on spending by counties, saying the curbs would ensure prudent use of finances.

They also supported efforts by Controller of Budgets Agnes Odhiambo to ensure county budgets comply with the set laws and regulations.

Senate Finance Committee Chairman Billow Kerrow stressed that the move by CRA will ensure proper expenditure as stipulated in law. Senate Chip Whip Beatrice Elach and Kakamega Senator Boni Khalwale also supported the measures meant to safeguard public funds.

"CRA is empowered under Article 216 (2) of the Constitution to make recommendations on other matters concerning management of funds in counties. In formulating these recommendations, CRA shall seek to encourage 'fiscal responsibility'," explained the Mandera Senator.

Kerrow also made reference to the Public Finance Management Act, which demands that counties adhere to the principles of the financial management as outlined in Article 201 of the Constitution. The Act requires the public finances to be utilised in a prudent and responsible way. "A minimum of 30 per cent of the county government's budget shall be allocated to development expenditure," he said.

Kerrow said the guidelines set out by CRA will help ramp up public confidence in devolution by ensuring county governments' polices are implemented as planned.

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Members of the County Assemblies have protested CRA's decision and threatened to move to court to seek interpretation on the matter. County Assemblies had accused the Committee of not responding to their concerns despite sending a letter to them.

But Kerrow disputed their claims and affirmed that the law is clear and must be followed to the letter.

Senate Chip Whip Beatrice Elach and Boni Khalwale (Kakamega) urged counties to comply with the recommendations, warning that attempts by assemblies to re-do their budgets might disrupt their respective counties' operations.