This archive report was first published on 17 July 2019.
President Uhuru Kenyatta's plan to allow ministries to withdraw cash from the government account has been met with skepticism by the State House budget unit, citing constitutional concerns.
According to a letter from Justus Nyamunga, Secretary, Budget and Policy Strategy at State House, to the Attorney General, the withdrawal of funds for ministries before the enactment of the Division of Revenue Bill and County Allocation of Revenue Bill would be 'legally untenable.'
The Division of Revenue Bill, which shares revenue between counties and the national government, has been stalled due to a dispute between the Senate and National Assembly over allocations.
President Kenyatta signed a warrant on June 28, allowing ministries and agencies to withdraw part of the Sh1.47 billion allocated to them for the year starting July. However, this move has been questioned by the State House budget unit, which has warned that the Controller of Budget may be constrained by the Constitution to authorize the withdrawal of funds if the Attorney General gazettes the warrant authority.
The stalemate over allocations to devolved units has seen MPs and Senators locked in a dispute, with MPs settling on Sh316 billion while senators and governors insist on Sh327 billion.
Article 218 of the Constitution envisages the enactment of the two bills into law before April 30. However, the bills have yet to be passed, with the latest version of the bill published by Kimani Ichung'wah, chair of the Budget and Appropriations Committee of the National Assembly, putting the equitable figure at Sh316 billion.
