The Finance and Budget committee said it will henceforth invoke provisions of the Constitution and the Public Finance Management Act to punish counties that misappropriate public funds sent to the 47 devolved units annually.
The Senate has resolved to block the transfer of billions of shillings to counties which fail to account for the previous allocations from the national government.
The Finance and Budget committee said it will henceforth invoke provisions of the Constitution and the Public Finance Management Act to punish counties that misappropriate public funds sent to the 47 devolved units annually.
Article 225(3) of the Constitution allows the Cabinet Secretary responsible for finance to stop the transfer of funds to a State organ or any other public entity only for a serious material breach or persistent material breaches of the measures established under an Act of Parliament.
But a decision to stop the transfer of funds to a State organ or any other public entity may not stop the transfer of more than 50 per cent of funds due to a county government.
“A decision to stop the transfer of funds as contemplated in clause (3) shall not stop the transfer of funds for more than 60 days and may be enforced immediately, but will lapse retrospectively unless, within 30 days after the date of the decision, Parliament approves it by resolution passed by both Houses,” the Constitution states.
According to the Supreme law, Parliament may not approve or renew a decision to stop the transfer of funds unless the Controller of Budget has presented a report on the matter to Parliament and the public entity has been given an opportunity to answer the allegations against it before a parliamentary committee.
Newly elected chairman of the Finance and Budget committee Mohammed Mahamud and his deputy Isaac Mwaura also threated to punish counties that spent locally generated revenue at source contrary to the law.
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