Give counties more funds and time to anchor devolution, governors say

Council of Governors chairman Peter Munya hands over the Counties Torch to Kisumu Governor Jack Ranguma (left) after its launch in Nairobi yesterday. [PHOTO: JONAH ONYANGO/STANDARD]

Governors have told critics of the devolved units that real power, real resources and real engagement of communities came with devolution.

But the county chiefs are unanimous that more funding from the national government and respect for the Constitution are required for devolution to deliver more services to the people.

Council of Governors (CoG) chairman Peter Munya said despite counties receiving meager allocations, much has been achieved in the last three years.

"This is why we have insisted that the increment should be formally anchored in law to reflect unconditional transfers of 45 per cent of the previous year's collected total revenues," he said.

Munya spoke during the Governors' State of Devolution Address in Nairobi yesterday.

"We strongly believe that the optimal success of devolution, being the will of the people and further being the central pillar of the Constitution, is dependent on adequate allocation of financial resources to counties," he said.

He said it is worrying that from the raised national revenue of Sh1.4 trillion in the 2016/17 financial year, counties will receive only 21.9 per cent and the national government will receive Sh1.1 trillion, amounting to 78.9 per cent.

Munya said the disbursement of money to counties from the National Treasury has throughout the three years been outside the mandated time-frame as provided for in the Public Finance Management (PFM) Act. The Act requires that the transfers be made on every 15th date of the month.

The Meru governor said the delay has created financial management uncertainties in counties.

"If monies are released without delay, county governments' rate of development and delivery of services will be enhanced," he said.

The national government is yet to disburse cumulatively Sh59 billion of equitable share to the 47 counties, Sh2.7 billion of the maternal healthcare allocation, representing 65 per cent of the allocation, and Sh900 million of the level five hospitals' allocation.

Munya said the National Treasury continues to allocate Sh150 billion more every financial year to the national government on budgetary items that are fully devolved.

"This forms the basis of the increased push for more allocation to counties. Besides, the national government has not shown any urgency to complete the audit of its accounts," he said.

"The allocation to counties in the 2016/17 financial year is based on the approved accounts of the 2013/14 budget, thus creating a basis of retaining more money with the national government at the expense of service delivery."

Munya faulted the national government for unchecked borrowing, saying the 2016/17 budget puts all resources worth Sh712.3 billion from external and domestic borrowing to support 93 per cent of development expenditure, including net lending amounting to Sh811.2 billion.

"The total external debt stock, including the International Sovereign Bond, stood at Sh1.6 trillion at the period ending December 2015. Within this same period, the national government additionally borrowed Sh680 billion. Out of a budget of Sh1.3 trillion, it proposes to use Sh712.1 billion to pay loans and interests thereof," he said.

Munya also faulted the national government for failing to allocate funds under the county equitable revenue share for county roads.

"With the end of the transition period on March 4, county governments received an extra 31,113km of roads, making a total of 121,113km. Yet in the financial year 2016/17, no funds have been allocated to the counties to support the additional roads," he said/

"It is surprising that the national government is handling only 39,995km, yet has an allocation of approximately Sh79 billion."

Munya named the Health Bill, the Water Bill, the Kenya Roads Bill, the Division of Revenue Act 2016, the Agriculture Fisheries and Food Authority Act and the Wildlife Conservation and Management Act as some of the many pieces of legislation with provisions that infringe and interfere with the functions of county governments.

"The Division of Revenue Act 2016 blatantly disregarded the Constitution by failing to allocate resources for functions that have been obviously transferred to county governments," he said. He accused the Senate of being asleep on the job.

Elgeyo Marakwet Governor Alex Tolgos said: "The Maputo Declaration calls for 10 per cent of the national budget to be allocated for agriculture. This is not the case. Counties also provide services across their borders. We need fresh costing and more funds for these services."

Bomet Governor Isaac Ruto echoed Munya's sentiments and urged Kenyans to support devolution. "We thank those who agitated for the rights of Wanjiku in the past. Now we call upon the person who wants to be President in 2017 to tell us how much he or she will give for devolution," Ruto said.