Once again, the perennial debate over fair revenue distribution between the national government and county administrations has resurfaced, with governors advocating for a substantial increase in funds allocated to the devolved units.
The Council of Governors (CoG) has proposed a significant boost in allocation, calling for an increase to Ksh439.5 billion, a figure sharply contrasting with the government's proposed raise to Ksh391 billion.
During a session before the Senate's Committee for Finance and Budget, Chairperson of the Council of Governors, Anne Waiguru, emphasized the critical need for enhanced resources, stating, "We are not seeking favours; we are advocating for resources adequate to sustain counties and ensure their continued functioning."
On the other hand, the Commission on Revenue Allocation (CRA) has recommended a revision of county allocations to Ksh398 billion, advocating for an increase of Ksh7 billion to meet the fiscal demands of the devolved units.
Despite constitutional provisions requiring equitable revenue sharing between the national and county governments, reports indicate a significant delay in the distribution of funds, exacerbating financial hardship at the local level.
As of March, county governments have yet to receive nearly half of their equitable revenue share from the Treasury, with only 53.4 percent of allocated funds disbursed by February 29, 2024.
The impasse in budget negotiations has led to a deadlock, with governors and government officials at odds over the appropriate allocation for counties in the upcoming fiscal year.
While the National Treasury has proposed Ksh391 billion, the Council of Governors remains steadfast in its demand for Ksh439.5 billion, highlighting the stark disparity in resource allocation priorities.
Efforts to mediate the dispute through the Intergovernmental Budget and Economic Council (IBEC) have not yet yielded a resolution, with divergent positions on the allocation of shareable revenue.
Governors continue to advocate for a Ksh450 billion allocation to counties, citing escalating operational costs and the need to sustain essential services and projects.
The recent meeting convened to address revenue allocation for counties brought together key stakeholders, including the Council of Governors, Commission on Revenue Allocation, National Treasury officials, and Senate representatives. However, the outcome remains uncertain, prolonging the uncertainty surrounding county finances.