Economy

Lawmakers push for CDF-type fund for wards at Kakamega devolution forum

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Delegates walk to Kakamega High School to register for the devolution conference on April 23, 2018. FILE PHOTO | ISAAC WALE | NMG

The contentious proposal for a fund for members of county assemblies (MCAs) is likely to dominate the fifth devolution conference in Kakamega, which started on Tuesday.

While the main theme of the three-day conference revolves around the Jubilee government’s "big four" agenda, there are signs that the proposed fund, similar to the Constituency Development Fund (CDF) for MPs, could take the centre stage.

The National Treasury and the Controller of Budget's office have opposed the County Ward Development Fund 2017, terming it unconstitutional and against the Public Finance Management Act.

But in what appears to be sentiments that could set the tone of the next three days, Senate Majority Leader Kipchumba Murkomen appeared to go against the position.

READ: Why Treasury is opposed to a CDF-type fund in counties

ALSO READ: Counties spent Sh5.3 billion last year on trips

MORE: Nairobi MCAs threaten to reject budget over fund

Endorse proposal

The Senate leader assured the MCAs that the Senate will endorse the proposed law.

“we have agreed with the Minority Leader James Orengo that we shall endorse the Bill,” Mr Murkomen said, amid cheers from MCAs attending the forum at Kakamega High School.

“Even if we don’t pass it the way it is, I want to give all MCAs an public undertaking that we shall support the Bill.”

Kakamega Senator Cleophas Malala, who had set the stage for the issue, had in his valedictory remarks decried the low absorption rates of counties' development budgets, arguing that the solution lies in the establishment of the fund.

“The letter and spirit of devolution has come of age,” Mr Malala stated, as MCAs cheered on.

Low absorption rates

“But there is one anomaly: the low absorption rates of the development budget. This is the elephant in the room.”

Mr Malala said as the link to grass-root communities, MCAs are the engines of development and should be facilitated to deliver service to the lowest county units.

“Over Sh1.5 trillion has been disbursed to the counties in the last five years. What is the purpose of allocating the funds but the beneficiaries cant spend it?” he asked.

"There are instances where up to 70 per cent of development budget is not absorbed.

“The only answer to this problem is to ensure that the Ward Development Fund is actualised. It will help in absorption rates of devolved funds,” he said.

40pc allocation

Senate Minority leader James Orengo supported the idea of increasing allocations due to the counties, up to 40 per cent of the ordinary revenues generated at the national level, saying the clamour for additional funds to the devolved units is not populist.

“In the last five years, the blame for poor delivery of services has shifted to the governors. Whether it is a broken road, collapsed classroom walls, or lack of drugs in hospital. There is a case for increased allocations to the counties.

President Uhuru Kenyatta was later Tuesday expected to preside over the official opening of the conference, the fifth since devolution was first implemented.

The theme of the conference is anchored on government’s big four agenda: health, agriculture, housing and trade and manufacturing.

Nasa leader Raila Odinga will deliver the key note address on Wednesday while Deputy President William Ruto will preside over the closing ceremony on Thursday.