President William Ruto has asked the Kenya Revenue Authority (KRA) to withdraw lawsuits against county governments and seek alternative resolves.
This was advised through a joint communique issued on Saturday, February 11, by the National Executive and the Council of Governors (CoG).
"KRA shall withdraw all matters against county governments from court and seek alternative dispute resolution," CoG Chair Anne Waiguru said.
Further, cases of state agencies suing each other shall be subjected to an alternative dispute resolution, and settled out of court, as the committee looks to cut unnecessary litigation fees incurred during the process.
"All the existing inter-governmental legal cases by one level of government against the other level of government shall be subjected to Alternative Dispute Resolution as provided for under the intergovernmental Relations Act, 2012 through IGRTC."
The move was first fronted by President William Ruto last month when he met Cabinet Secretaries, governors, and Members of Parliament in Nanyuki.
The Head of State warned that government agencies taking the other to court would foot their own legal fees.
"I have already given very clear instructions to government ministries and departments who, for some reason, one department takes its counterpart to court, and we end up paying huge resources to lawyers. Any government agency that decides to take its counterpart to court will pay using their own money," Ruto said.
In more resolves from the Saturday meeting of the Executive and CoG, the Ministry of Health shall also extend contracts of Universal Health Coverage (UHC) staff for another three years, "under similar terms and conditions."
The Government also resolved to kick-start the process of restructuring the National Health Insurance Fund (NHIF), in efforts to ensure a better health insurance scheme for Kenyans.