Governors, CRA warn over stand-off on revenue bill

The impasse over the Division of Revenue Bill, 2015, between the two houses of Parliament will have far-reaching implications if it not resolved by Tuesday, governors and the Commission on Revenue Allocation (CRA) have cautioned.

The Council of Governors (CoG) and CRA have expressed concern that the continued stalemate, following two failed mediation meetings, could paralyse public service delivery and hurt county operations.

They criticised claims by the National Assembly that if the bill flops, county governments will face a financial crunch, while the national government will use estimates.

Under the disputed proposals, the national government will retain Sh976.9 billion out of total shareable revenue of Sh1.2 trillion. Last year, counties received Sh226 billion and Sh1.87 billion for Level Five hospitals.

"This grand-standing must stop. I appeal to the mediation committee meeting again on Tuesday to reach consensus on this matter. I urge for wisdom to prevail," said CRA Chairman Micah Cheserem.

He added, "If the bill collapses, it will affect both levels of government. I believe all mediation committee members will approach this issue with a sober mind. What counties are to be added is a mere Sh7.7 billion and not Sh70 billion. Surely, Sh7.7 billion of Sh2.1 trillion is not a big deal."

Cheserem said MPs must reach a compromise because time was running out and we are fast approaching the end of this financial year.

"There is absolutely no reason to justify the House (National Assembly) refusal to the Senate amendments. What is happening now raises more queries," said Cheserem, who added, "CRA recommends that the parties involved in this stand-off should reach a deal. This should be done on Tuesday."

CoG Chairman Peter Munya (Meru), Vice Chairman Salim Mvurya (Kwale) and immediate former chairman Isaac Ruto (Bomet) accused the National Assembly of undermining counties and applauded the Senate stand on adequate funds to devolved units.

Munya said it was regrettable that MPs were opposed to more funds going to counties.

"The standoff on the bill is worrying. Counties should be adequately resourced to effectively manage devolved functions. For instance, the challenges in the health sector and others, is the issue of underfunding," said Mvurya.

"Counties are not getting enough funds commensurate to the functions assigned in law. Resources follow functions, failure to get adequate resources forced governors to come up with the Pesa Mashinani drive," said Ruto.