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Counties Threaten Shutdown Over Revenue Dispute

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 29 August 2019.

On August 29, 2019, the Council of Governors, led by chairman Wycliffe Oparanya, issued a warning that county governments across the country would shut down operations if the Division of Revenue impasse was not resolved.

According to Mr. Oparanya, the standoff over the allocation of revenue to counties had caused a cash crisis, leading to strikes over salary delays and several county governments failing to pay their workers.

Mr. Oparanya, who is also the Governor of Kakamega County, stated that the devolved units had been struggling to pay salaries for their staff and would not be able to pay salaries at the end of August and going forward.

He emphasized that most counties had not been able to pay salaries to their employees for the last two months due to the standoff between the National Assembly and the Senate over the allocation.

As a result, governors moved to the Supreme Court seeking its advisory on how the State revenues should be shared out between the counties and the national government.

On the allocation of revenue, the National Assembly is in agreement with the Treasury to allocate counties Sh310 billion as equitable shared revenue, but the Senate wants Sh335 billion in line with the Commission on Revenue Allocation (CRA) advise.

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