Governors protest Sh380 billion allocation from Treasury

Council of governors vice chair Ahmed Abdullahi, addressed the press on February 1, 2023, at Movenpick hotel in Nairobi. [Edward Kiplimo, Standard]

The Council of Governors (CoG) has protested the National Treasury's allocation of Sh380 billion to counties for the next financial year instead of the equitable share revenue of Sh425 billion.

CoG deputy chair Ahmed Abdullahi (Wajir) said the National Treasury has not explained the basis for deviating from the recommendations by the Commission on Revenue Allocation (CRA).

Addressing journalists after a consultative meeting with the CRA and the National Treasury in Nairobi yesterday, several governors raised concerns over the allocation.

"A careful analysis of the draft Budget Policy Statement indicates considerable increment of share revenue for devolved functions with a case in point being Ministries of Health and Agriculture whose allocation has been increased by Sh25.8 billion and Sh15.7 billion respectively," said Abdullahi.

The Wajir governor said the budget ceilings for the national government ministries have not been rationalised to ensure key priority programmes which are fully devolved are allocated to counties in the equitable share of revenue.

Abdullahi insisted that the CRA recommendations are obligatory as they are highly technical in nature and that any deviations therefore must be rationalised on the basis of the objective criteria set out in article 203(1) of the Constitution.

"In this regard, the Council of Governors expresses its discontent due to the National Treasury failure to build consensus on the county equitable share of revenue despite the objective recommendations issued by the Commission on Revenue Allocation," he said.

He said CoG is apprehensive that the continued allocation of funds for devolved functions to national government ministries and departments is an affront to devolution.

Governors Mutula Kilonzo (Makueni), Fernandes Barasa (Kakamega), Mutahi Kahiga (Nyeri) and Jonathan Bii (Uasin Gishu) who attended the meeting promised to seek audience with Deputy President Rigathi Gachagua to resolve the matter.

Intergovernmental Budget and Economic Council meeting chaired by Gachagua last week failed to resolve the dispute on the allocation of revenue to the counties with governors demanding to meet President William Ruto in efforts to unlock the stalemate.

The DP said that all 47 governors will hold a two days retreat with the President to address the contentious issues between the national and county governments to ensure service delivery.

"We have not been able to reach consensus but all the stakeholders are in agreement that we are facing tough economic times with all the contentious issued set to be resolved during the two days retreat between President William Ruto and the 47 governors," said Gachagua.