MPs reject Sh7bn emergency cash increment to counties

The National Assembly and the Senate are headed for a fresh clash following the latter’s decision to increase the annual budgetary allocation to county governments by Sh7.4 billion “for emergency purposes”.

The Senate went ahead to propose dividing the money equally among the 47 counties with each county being allocated Sh93.6 million.

The Budget and Appropriations committee of the National Assembly has, however, rejected the proposed increment saying the money had been factored in the Division of Revenue Bill, 2015.

The Public Finance Management Act provides that counties can allocate funds, not exceeding two per cent of the total revenue received from national government, to cater for emergencies.

The Budget committee, chaired by Mbeere South MP Mutava Musyimi, met in a closed session Wednesday to deliberate on the Senate's addition to the Sh283 billion the National Assembly allocated to counties.

The Senate, in considering the Division of Revenue Bill, 2015 as approved by the National Assembly increased the allocation to counties to Sh291 billion.

“The Budget committee has rejected this proposal because it goes against the approved Budget Policy Statement (BPS), on which the Senate concurred with the National Assembly,” the team explained.

“This document contains budget ceilings which were set and approved by both Houses. We can't just reopen this given the limited resource envelope,” Budget committee member John Mbadi (Suba) told Business Daily.

Mr Mbadi said the PFM Act allows counties to spend up to two per cent of their respective allocations for emergency purposes.

“The law is clear on emergency funds. The committee has rejected the Senate proposal,” he said. “If the House agrees with us, then this matter is headed to the Mediation Committee.”

Article 113 of the Constitution establishes a mediation committee appointed from equal membership of both Houses to attempt to develop a version of a Bill that both Houses will pass.

"If the mediation committee agrees on a version of the Bill, each House shall vote to approve or reject that version of the Bill.

“If the mediation committee fails to agree on a version of the Bill within 30 days, or if a version proposed by the committee is rejected by either House, the Bill is defeated,” Article 113 of the Constitution states.

If the MPs reject the Senate proposal, it will be the second time the two Houses constitute a mediation team to hammer out a compromise over the Division of Revenue Bill.