Economy

Row looms after Senate devolves rural power cash

governors

Governors Samuel Tunai (Narok) and Paul Chepkwony (Kericho) follow proceedings during a meeting held to discuss the transfer of agricultural training centres and mechanisation stations to the county governments at the Kenya Agricultural Research Institute in Nairobi in February. PHOTO/FILE

The Senate has set itself up for a fight with MPs over the control of billions of shillings meant for rural electrification after the devolution committee endorsed the transfer of the function to the governors.

Rural electrification is one of the functions the Senate wants devolved to the counties after a petition by the governors, which led to the proposal by the Devolved Government Committee chaired by Kipchumba Murkomen.

This means that counties could influence how the billions allocated to the Rural Electrification Authority (REA) are used in what could spark a fight with MPs who next year are expected to control Sh3.65 billion for supply of power to remote zones.

“This is a concurrent function which both levels of government can perform. The two levels of government in the spirit of consultation and cooperation should devise pragmatic mechanisms to execute the function and avoid any duplication in the execution,” read the report by Mr Murkomen, the Elgeyo Marakwet Senator.

The Senate wants both the governors and the national government to share the responsibilities of connecting rural Kenya to the national grid in the short-term pending the full transfer to the devolved units.

But MPs said that counties have no capacity to wire homes to the grid and that REA under the guidance of the national government would continue with the function.

“There is nothing wrong for the Senate to discuss the report on devolving all functions but the reality on the ground is that counties have no capacity to lay electricity or major road infrastructure,” said Omondi Anyanga, the MP for Nyatike.

READ: MPs to control Sh3.65bn for electrification of counties

“REA will continue to handle this work until we review the relevant Acts of Parliament. The Constitution is very clear on what functions should be handled by national government and county governments.”

The role of connecting rural homes to the national grid remained a function of the national government after the Transition Authority advised that the counties had no capacity to handle the role.

The Treasury will allocate the REA Sh7.3 billion for the year ending June 2015, but the budget will be shared equally between the counties and the national government. But the Sh3.65 billion counties cash will be controlled by MPs.

The counties cash will be divided among the constituencies based on their poverty index and population without electricity and controlled by the MPs in what is set to anger governors.

Last year, money meant for REA was devolved to the counties after the June budget and authority had to wait for February for a new allocation in what amounted to “double budgeting” for the same functions at the national and the county levels.

“The national government revenue share is divided equally among the two levels of government since rural electrification is a shared function,” reads the Division of Revenue Bill tabled last Thursday in Parliament by Leader of Majority Aden Duale.

Governors have unsuccessfully sought to control the use of revenues devolved to the counties including the Equalisation Fund and allocation to the regional hospitals, commonly referred to as Level 5.

The MPs, through their CDF committees, will oversee the projects to be financed by the rural electrification allocations. The money will remain with REA, but the MPs will dictate zones to be connected to the grid.

The national government allocation of Sh3.65 billion will be mainly used to connect public facilities such as schools as the State races to link rural schools under the ambitious plan by to give free laptops to primary school children.

The Ministry of Energy had a target to connect 5, 000 rural schools to the national grid by June, but has so far managed 1,000.