Senators during a recent session. PHOTO | JEFF ANGOTE
Devolved governments are set to receive Sh228.47 billion for the next financial year after the Senate approved the County Allocation of Revenue Bill, 2014.
At a special session convened to consider amendments made by the National Assembly on the Bill yesterday, Senators endorsed the release of Sh226.6 billion to be shared among the 47 counties and a further Sh1.87 billion conditional grants for 11 Level five hospitals.
Senators voted to approve the Bill by 27 votes without abstention.
The Bill, which has delayed funding to county governments stalled after MPs disagreed with the Senators over the allocations as contained in the Division of Revenue Bill, 2014.
The Division of Revenue Bill shares cash raised nationally between national and county governments. The Senate and the National Assembly differed on the amount of funding to Level Five hospitals after the MPs settled on a global figure to counties of Sh226 billion.
A mediation committee comprising members from both Houses settled on Sh226.6 billion and an additional Sh1.87 billion to counties with Level Five hospitals.
The Senate was recalled to approve the Bill after MPs amended it to include the commencement date. Once the Bill is assented to by President Uhuru Kenyatta, counties will get the money seven days after the date.
Ordinarily, Bills that are assented to by the President takes effect 14 days from the date of assent.
County governments have been struggling to pay employee salaries resulting in strikes by health workers.
The Treasury released Sh29 billion in loans to counties last week to pay workers and run other services pending the passage of the Bill.
During debate on the consideration of the National Assembly amendments to the Bill, Senators were split between the ruling Jubilee and the Opposition Cord coalition on the proposed spending caps to county governments.
The Senate amended the Public Finance Management Act 2012 through the Bill to empower the Commission on Revenue Allocation (CRA) to recommend spending ceilings.
“Pursuant to Article 201 and 216 of the Constitution and notwithstanding subsection (2), the Commission on Revenue Allocation shall recommend to the Senate the budgetary ceilings on the recurrent expenditure of each county government,” section 12 of the Bill states.
Jubilee senators led Majority leader Prof Kithure Kindiki and devolution committee chairman Kipchumba Murkomen said they will oppose any attempts to introduce spending caps by county governments and their assemblies.
Minority leader Moses Wetangula accused Jubilee members of changing positions to dissuade Members of the County Assemblies (MCA’s) from supporting the referendum being pushed by Cord and Council of Governors.
“What Meru Senator Kiraitu Murungi said is part of gymnastic and sweeteners that is being offered to MCA’s by Jubilee to lure them against referendum “Some allege they will remove ceilings in the Bill that are not there to hoodwink MCA’s s to think that they are being assisted. There are no ceilings but only a recommendation that the CRA can recommend spending ceilings,” Wetangula said.
He said those dangling sweeteners to MCA’s should be aware that they will be eaten and they will support referendum.
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