State eyes Sh35bn counties budget refund for roads, electricity agencies
Treasury PS Kamau Thugge. The Treasury faces hard choices in recalling more than Sh35 billion meant for infrastructure that was allocated to counties. Photo/File.
What you need to know:
Principal secretary Kamau Thugge told three committees of Parliament that an inter-ministerial committee had been formed to look into how the money can be reallocated because the counties had no capacity to build roads or extend electricity to rural areas.
He added that the committee comprising the ministries of Devolution and Planning, Transport and the Treasury would give its final report to the committees on Tuesday.
The money intended for roads was Sh28 billion while that for the Rural Electrification Authority (REA) was Sh7.2 billion.
The Treasury faces hard choices in recalling more than Sh35 billion meant for infrastructure that was allocated to counties.
Principal secretary Kamau Thugge told three committees of Parliament that an inter-ministerial committee had been formed to look into how the money can be reallocated because the counties had no capacity to build roads or extend electricity to rural areas.
“The committee has agreed that funds meant for Kenya Rural Roads Authority and Kenya Urban Roads Authority should be returned to the national government for the two authorities to complete ongoing projects on behalf of counties,” said Dr Thugge.
He added that the committee comprising the ministries of Devolution and Planning, Transport and the Treasury would give its final report to the committees on Tuesday.
The money intended for roads was Sh28 billion while that for the Rural Electrification Authority (REA) was Sh7.2 billion.
The Treasury can either prepare a supplementary budget to finance the three authorities afresh or propose amendments to the Division of Revenue Act in order to reverse the allocations. The latter could be problematic given the acrimony between the Senate on the one hand and the Executive and Parliament on the other over how the law was enacted.
“It is now clear that counties have no technical capacity to do roads or supply electricity,” said Dr Thugge. “That money for roads and power will revert to the national government to undertake functions on behalf of the counties as stipulated in Article 187 of the Constitution.”
Devolution PS John Konchella said the ministry had no problem with the money being reassigned. “We have no objection if Finance and Transport (ministries) reach an agreement,” he said. “Ours is to communicate to counties that the money will be retained for use by the two authorities.”
Energy PS Joseph Njoroge had complained to MPs that the amount allocated to REA was not in the ministry budget, yet it was critical for the success of the Laptop for Class One pupils initiative which targets to connect 11,000 primary schools.
MPs also demanded that the funds be maintained at the national level and be used to implement projects in constituencies as opposed to counties.
“We want REA to retain the funds and MPs identify projects for implementation as the case has been,” said Runyenjes MP Cecily Mbarire.
MPs Moses Lesonet, John Mbadi and James Nyikal said the Treasury should draw a supplementary budget for financing the three authorities.
“I don’t think governors will agree to let go of the Sh210 billion which they have already budgeted for,” said Mr Mbadi.
