This archive report was first published on 23 July 2019.
Published on July 23, 2019, a warning from Council of Governors chairman Wycliffe Oparanya has sparked concerns about the financial stability of county workers. The National Treasury may delay disbursing funds meant for salaries following the stalled mediation on the Division of Revenue Bill between the National Assembly and the Senate.
County government employees and service providers are at risk of going without pay as revenue-sharing negotiations between the national government and counties have collapsed. The crucial Division of Revenue Bill, which seeks to allocate funds between the two levels of government, has left the Senate and the National Assembly sharply divided.
The two sides have different figures for what is due to the counties. While the National Assembly has proposed that counties get Sh316 billion, the Senate insists that the law must be respected and counties allowed to get their due share.
Initially, the National Assembly had allocated Sh310 billion to counties as their share of the equitable shareable revenue, which was in line with the National Treasury's proposals. However, the Senate amended the Bill and placed the figure at Sh327 billion.
The National Treasury proposed a reduction in county equitable share of Sh310 from Sh314 billion on account of underperformance of revenue that resulted in a downward adjustment of the forecasted revenue for the 2018/19 financial year. This move was opposed by the Council of Governors and the Commission on Revenue Allocation.
Meanwhile, Kakamega County Governor Wycliffe Oparanya has pleaded with local banks not to penalize county government employees for any delays in servicing outstanding loans due to the prevailing crisis. He also urged landlords to extend time for payment of rent as the county seeks to resolve the issue.
