Parliament has shot down a proposal by the Commission on Revenue Allocation (CRA) to transfer Sh10 billion from the national government budget to finance four cities considered as engines of economic growth and establishment of two regional cancer referral centers.
The Budget and Appropriations Committee (BAC) says the new conditional transfer of Sh5 billion to counties to finance Nairobi, Mombasa, Nakuru and Eldoret and another Sh5 billion for establishment of two cancer referral centers cannot be accommodated in the 2019/20 Division of Revenue Bill due to resource constraints.
“This are indeed pertinent proposals, however, due to the constrained fiscal framework for financial year 2019/20, it will be difficult to allocate additional resources as conditional grants to counties and may be considered for the next financial year,” Mr Kimani Ichung’wa, who chairs BAC said in a report on the Division of Revenue Bill.
The CRA had proposed the allocation of Sh5 billion for provision of sewerage systems, solid waste disposal and storm water drainage and management as per the Urban Areas and Cities Act 2011.
It also wanted Sh5 billion to be transferred from the National Government to counties for establishment of two regional cancer referral centers.
BAC said counties, with the exception of Nairobi and Mombasa will be able to benefit from the Sh11.5 billion allocation from World Bank under the Kenya Urban Support Programme.
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