Counties get Sh4.7bn extra in grants amid cash share stalemate

President William Ruto with the council of governors during consultative meeting in Naivasha ,Nakuru county on February 10,2023. [Kipsang Joseph, Standard]

An ordinary session of the national and county governments coordinating summit yesterday made significant progress in unlocking the fruits of devolution, by agreeing on critical policy proposals and decisions to enhance intergovernmental relations.

In a communique last night, the summit listed 23 action areas that will empower counties, reduce friction and promote effective service delivery by both levels of government.

However, the summit failed to unlock the stalemate on the sharing of revenue. Instead, the 47 counties will collectively receive an extra Sh4.7 billion in conditional grants as the national executive goes back to the drawing board to address the impasse within the next seven days.

The two-day summit held in Naivasha was attended by President William Ruto, his deputy Rigathi Gachagua, Prime Cabinet Secretary Musalia Mudavadi and governors.

"The national executive shall relook into the national government's proposed 2023/2024 budget and programmes within the next one week," said Kirinyaga Governor Anne Waiguru.

The county governments are demanding Sh425 billion against Sh407 billion which the Commission on Revenue Allocation is offering.

Waiguru, who also chairs the Council of Governors (CoG), said that during the agreed period, the executive shall identify areas of duplication to allow the transfer of resultant resources to counties.

It was, however, a win for the counties as the national government agreed to have the counties allocated more grants for development projects.

"The counties shall be allocated an additional Sh100 million each as conditional grants in the 2023/2024 financial year to operationalise the national government's programme on aggregation and industrial parks in the counties," said Waiguru.

The Kenya Kwanza government committed to ensuring that there is timely disbursement of revenues to the counties to resolve delays that have in the past affected effective service delivery.

The counties shall further get conditional grants amounting to Sh2.7 billion for the next three years which shall be spent on the service and training of community health workers and volunteers.

The Intergovernmental Relations Technical Committee (IGRTC) has also been instructed to fast-track the identification, analysis and transfer of all pending devolved functions.

"The committee shall work with the CoG and other stakeholders to hasten the completion of valuation of all assets related to the devolved functions in the current financial year to allow their formal and final transfer," she said.

The summit resolutions are also likely to have some of the state corporations performing functions related to the counties compelled to include representatives of the devolved units.

"The CoG shall forward a list of the corporations to the Office of the Deputy President for purposes of ensuring effective intergovernmental coordination of concurrent functions," said Waiguru.

It was also agreed that cases involving the two levels of government against each other be withdrawn from the courts and instead a truce arrived at through an alternative justice resolution mechanism. "The Kenya Revenue Authority shall withdraw all matters against the county governments," she added.

The Budget for the financial year beginning June 2023 will also consider the road maintenance levy fund through a structured process to be arrived at in collaboration with the CoG.

On the promised construction of over 100 dams across the country, it was agreed that the CoG and the Ministry of Water shall collaborate in the identification and design of dams and projects under water purchase agreements.

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