Bill seeks to ensure counties get money in March 2013

• The County Governments Public Finance Management Transition Bill 2012 published by Finance Minister Njeru Githae empowers the Controller of Budget to approve the release of half of the budget for county governments as prepared by the Transitional Authority.
• The Bill aims to ensure pioneer governors are not starved of funds between March and June next year if Parliament dissolves before approving the budget for counties.
• Parliament is expected to adjourn for Christmas recess Thursday pending dissolution on January 15, 2013 to pave way for the March 4 General Election that will usher in 47 county governments.

A new Bill is seeking to empower the Controller of Budget to withdraw money from the Consolidated Fund for use by counties next year.

The Bill published by Finance Minister Njeru Githae aims to ensure pioneer governors are not starved of funds between March and June next year if Parliament dissolves before approving the budget for counties.

Under the Bill, the Controller of Budget, Agnes Odhiambo, will authorise for release of half of the counties’ budget.

The County Governments Public Finance Management Transition Bill 2012 published by Mr Githae empowers the Controller of Budget to approve the release of half of the budget for county governments as prepared by the Transitional Authority.

The Treasury set aside Sh148 billion in the 2012/13 budget to finance devolution. According to the Bill, the National Treasury will prepare a Transition County Allocation Bill that shall be submitted to Parliament for approval.

Parliament is expected to adjourn for Christmas recess today pending dissolution on January 15, 2013 to pave way for the March 4 General Election that will usher in 47 county governments.

The law requires that once transfer of functions to county governments is gazetted, the Transitional Authority should help prepare budget estimates for the county governments for the period between March and June 2013 and submit them to the Treasury.

The Treasury is supposed to table the budget estimates, the Transition to County Allocation of Revenue Bill, the Transition County Appropriation Bill and other documents in sufficient time to allow for approval before the first election under the Constitution.

The Transition County Appropriation Act empowers the Controller of Budget to withdraw funds from the County Revenue Funds until the county assembly passes the County Appropriation Bill.

The County Governments Public Finance Management Transition Bill also appoints the chairman of the Transitional Authority, Kinuthia wa Mwangi, to be the head of county treasuries as the receiver and collector of revenue for a period of three years as county governments build their capacity.

Mr Mwangi will act as the county principal officer with responsibilities of designating transition principal officers in each of the 47 counties to be responsible for receiving, collecting and accounting for county government revenue.

The proposed legislation, which was fast tracked for enactment Wednesday, lays out a framework for establishment and functions of transition county treasuries, the transition county budget process, transition revenue raising measures and expenditures for county governments.

It also sets out responsibilities of transition county accounts officers and receivers of revenues who would be seconded to the counties by the Treasury ahead of the coming into place of counties on March 4, 2013.

Officers who will serve under the Transition County Treasuries would be deployed by the National Treasury before January 15, 2013 and serve on secondment once counties are established.