Treasury CS Rotich wants Senate’s funds sharing role removed

Treasury secretary Henry Rotich. FILE PHOTO | NMG

What you need to know:

  • Treasury CS Henry Rotich wants role to be handled by the National Assembly alone to avoid conflict between the two houses.
  • The court ruled that the National Assembly and the Senate must be in agreement before the Division of Revenue Bill is enacted into law.
  • This is expected to receive stiff resistance from the Senate which argues that the National Assembly and the Treasury have been denying counties resources.

Treasury secretary Henry Rotich wants the authority of the Senate in sharing funds between the national and county governments removed. Mr Rotich wants this role to be handled by the National Assembly alone to avoid conflict between the two houses.

The court ruled that the National Assembly and the Senate must be in agreement before the Division of Revenue Bill — which shares revenues between the central government and counties — is enacted into law.

A mediation process is needed when differences arise between the Senate and the National Assembly over the allocation.

“The National Treasury expressed that although the court pronounced itself that the Division of Revenue Bill should be handled by both National Assembly and Senate, going forward there is need to relook into this issue so that it is handled by the National Assembly only,” Mr Rotich is quoted in documents tabled in Parliament last Thursday.

This is expected to receive stiff resistance from the Senate which argues that the National Assembly and the Treasury have been denying counties resources.

The Senate and Parliament have not agreed on the allocation for counties, setting the stage for mediation.

The Senate has sided with the Commission on Revenue Allocation’s (CRA) proposal to peg the equitable sharable revenue to counties at Sh314.7 billion, up from Sh291 billion set by the National Assembly.

The Treasury had earlier allocated the new governors Sh299 billion to share among the 47 county governments in the financial year starting July.

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