The Senate and the National Assembly have failed to agree on the amount of money to be allocated to devolved units in the Division of Revenue Bill 2017.
The Senate on Tuesday rejected the Bill developed by the National Assembly that allocated devolved units Sh291 billion for the next financial year.
The Senate has stuck to the Sh314 billion it proposed in an earlier Bill that collapsed at the first mediation process, throwing county operations into a crisis.
A new Mediation Committee will meet Thursday morning in last-ditch efforts to salvage the operations of the 47 county governments from grinding to a halt following the failure by the Senate and the National Assembly to agree on the amount of money to be allocated to devolved units in the Division of Revenue Bill 2017.
Speaker Justin Muturi named four members of the National Assembly to sit with four other senators appointed by the Senate to try to develop an agreeable version of the stalled Bill, which is critical to the vertical sharing of revenue between national and county governments.
The Senate on Tuesday rejected the Bill developed by the National Assembly that allocated devolved units Sh291 billion for the next financial year.
The Senate has stuck to the Sh314 billion it proposed in an earlier Bill that collapsed at the first mediation process, throwing county operations into a crisis.
Parliament must first approve the Division of Revenue Bill to pave the way for passage of the County Allocation of Revenue Bill that determines how much each devolved unit gets.
Failure to have the legislation in place means that counties cannot proceed to prepare their annual budgets.
The law allows the Controller of Budget to authorise the withdrawal of funds by counties based on the passage of their respective budgets.
“The Division of Revenue Bill (National Assembly Bill No 2 of 2017) was rejected at the second reading by the Senate…Accordingly, the Senate appointed Senators Billow Kerrow, Beatrice Elachi, Agnes Zani and Mutula Kilonzo Junior to represent the Senate in a Mediation Committee to consider the Bill,” Mr Muturi said in a communication to MPs.
He picked Mutava Musyimi, Mary Emase, Christopher Omulele and Richard Onyonka to the committee to represent the National Assembly in the Mediation Committee to solve the stalemate.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
