This archive report was first published on 15 August 2019.
Published on August 15, 2019, Attorney-General Kihara Kariuki has advised the Senate to seek a settlement with the National Assembly to release funds to counties, amid a revenue impasse.
The Senate and the National Assembly have been at odds over the Division of Revenue Bill, which allocates funds to the two levels of government. The National Assembly has proposed that counties receive Sh316 billion, while the Senate wants them allocated Sh335 billion.
AG Kariuki said the settlement should be recorded to ensure counties continue offering essential services pending enactment of the bill. He told the Senate that there is no legal basis for advancing funds to the devolved units, but suggested that the two Houses could record an amicable settlement in the Supreme Court.
"We are of the considered opinion that the Senate and the National Assembly may avail themselves of the opportunity afforded by the petition in the Supreme Court to record and amicable settlement," Mr Kariuki said in the advisory to the Senate.
He also suggested that the two Houses could amend the law and authorise disbursement of Sh310 billion, or part of it, without prejudicing the petition in the Supreme Court.
Alternatively, the AG suggested that the two Houses could consider quick enactment of the Public Finance Amendment Bill, 2019, which would empower the Senate to divide among counties 15 per cent of all revenue collected nationally in the event that the Division of Revenue Bill is not passed by June 10 in the preceding financial year.
