State snubs governors, MPs plea on Equalisation Fund

FROM LEFT: Machakos leaders MPs John Munuve (Mwingi North), Vincent Musyoka (Mwala MP), Governor Alfred Mutua, Joe Mutambu (Mwingi Central) and Majority Leader Joshua Mwonga. Governors and MPs have been divided over who should control the Equalisation Fund. [PHOTO: FILE/STANDARD]

Kenya: Treasury has deflated the contest between MPs and governors over the administration of billions to be channelled to 14 counties under the Equalisation Fund, proposing instead the formation of a board to oversee the fund.

Counties identified to benefit from the fund in the next three years are Mandera, Marsabit, Turkana, Wajir, Samburu, West Pokot, Tana River, Narok, Kwale, Garissa, Kilifi, Taita Taveta, Isiolo and Lamu.

Governors and MPs have been embroiled in a contest, with both sides lobbying strongly to be granted administration of the fund, created under Article 204 of the Constitution.

STATE’S CONTROL

County bosses from the beneficiary regions have said the money should be channelled together with their county allocations while legislators from the same regions have been lobbying to have the fund come under their administration through the Constituency Development Fund model.

But Treasury has ensured neither has a say by placing the kitty in the Government’s control.

Through regulations tabled in the National Assembly, Treasury has created a board named the Equalisation Fund Advisory Board, largely consisting of principal secretaries who will advise the Treasury Principal Secretary on allocation and performance of the fund.

The regulations also mandate the Treasury Cabinet Secretary to appoint four other members from outside the public service to the board.

These funds are to be spent in marginalised areas on development projects in the water, roads, health and electricity sectors “to the extent necessary to bring the quality of these services to the level generally enjoyed by the rest of the nation”.

AUTHORITY TO WITHDRAW

The same regulations grant the Controller of Budget power to authorise any withdrawal of money from the fund, whose account shall be held by the Central Bank of Kenya, including a withdrawal authorised under an Act of Parliament.

“Authorisation by Controller of Budget to withdraw from the fund together with written instructions from the National Treasury concerning the same, shall be sufficient authority for Central Bank to pay amounts from the Equalisation Fund Account,” the regulations say.