Vihiga municipalities face Senate scrutiny over governance

The Senate Standing Committee on Devolution and Intergovernmental Relations has questioned whether Vihiga's municipalities enjoy the autonomy envisaged under the law, raising concerns over governance, revenue collection and financial management.

The committee, which met Governor Wilber Ottichilo and county officials on Monday, examined the operations of Vihiga Municipality and the transition of the newly conferred Luanda and Kaimosi municipalities.

In its briefing, the committee noted that municipalities across the county remain dependent on county governments despite being granted municipal charters.

"The failure to fully operationalise municipal charters and the lack of operational autonomy from the County Executive were among the key audit findings across municipalities in Kenya," the committee report states.

Senators said Vihiga municipalities continue to rely on the county executive for budgeting, revenue collection, financial management and staffing, undermining effective service delivery.

They also recalled previous audit findings that cited inadequate funding for Vihiga Municipality.

County officials, however, told the committee that Vihiga Municipality was chartered in March 2020, while Luanda and Kaimosi completed the statutory process and were conferred municipality status earlier this month.

They said Vihiga Municipality had been delegated functions including urban planning, infrastructure development, environmental management, land-use control, budgeting and administration.

However, senators faulted the county for describing the process as a "transfer" of functions instead of a "delegation", saying Sections 20 and 21 of the Urban Areas and Cities Act only provide for delegation.

Vice Chairperson and sessional chairperson Senator Catherine Mumma said the county had misinterpreted the law.

"The contemplation is that the county government delegates. Municipalities are part of the county government entities, which are operating as quasi-autonomous. So, it was never about transfer," she said.

She explained that municipalities enjoy operational independence but remain financially accountable to county governments.

The committee also questioned why Vihiga Municipality has not been allowed to collect its own revenue despite having a fully constituted board, an approved Integrated Development Plan and a municipal manager.

Governor Ottichilo acknowledged that revenue collection remains centralised under the Department of Finance and Economic Planning.

"Revenue-raising and revenue collection functions have not been delegated to Vihiga Municipality. These functions are undertaken centrally by the County Government of Vihiga through the Department of Finance and Economic Planning," he said.

The county boss said a draft County Urban Areas and Cities Financing Bill, 2026, will provide the legal framework for delegating revenue collection powers to municipalities.

During the meeting, it was revealed that revenue generated within Vihiga Municipality has risen steadily from Sh56.9 million in the 2020/21 financial year to Sh74.8 million in 2024/25.

This financial year, Sh70.1 million had already been collected by March.

Despite the increase, senators questioned why the municipality still lacks the authority to collect and retain its own revenue.

Kajiado Senator Peris Tobiko said denying municipalities financial autonomy defeats the purpose of granting them municipal status.

"If the municipality is to operate, revenue collection is a key aspect. If they do not collect revenue, then I can imagine what that institution is looking like. Completely handcuffed," she said.

Ottichilo admitted that centralised budget execution and revenue collection remain key points of friction between the county executive and the municipal board.

The committee also flagged inconsistencies in financial records.

Senators further questioned the appointment timeline of Municipal Manager Paul Ayodi after documents showed he was designated accounting officer months before his appointment as municipal manager.

The committee directed the county executive to align its gazetted functions with the Urban Areas and Cities Act by replacing the "transfer" of functions with "delegation" and develop objective criteria for funding the municipalities.