This archive report was first published on 8 August 2019.
Kenya's county governments are on the brink of a financial shutdown after the Senate rejected the National Assembly's proposed revenue allocation, citing concerns over graft and mismanagement of funds.
The Senate's decision to increase the proposed allocation from Ksh.316.5 billion to Ksh.335.6 billion was seen as a compromise, but the National Assembly's insistence on retaining Ksh.6.2 billion for the controversial medical equipment leasing project was deemed unacceptable.
Senator Moses Wetangula accused the National Assembly of grandstanding, saying, 'There is no level of government that gives the other money, we are sharing revenue paid in taxes by Kenyans… The council of governors must also know this.'
Senator Ledama Ole Kina added, 'We are not asking for this money to be sent to governors, we are simply asking that money be given to devolved functions.'
With the dispute declared for a second time, a mediation exercise involving representatives from the two houses is underway to resolve the issue. If the two houses fail to reach a consensus, the Division of Revenue Bill will be published yet again, further delaying disbursement of funds to counties.
Counties have been plunged into a financial quagmire, with workers threatening to down their tools next week over delayed salaries. The industrial action, if effected, will stall operations in counties and paralyse service delivery, even as the president insists his administration has no more money for counties.
The two chambers of parliament proceed on a month-long break on Thursday, which may further delay the resolution of the dispute.
