This archive report was first published on 6 September 2019.
On September 6, 2019, the Senate made a significant U-turn on its demand for Sh335.6 billion in funding for the 47 county governments, opting instead for the Sh316.5 billion previously offered by the National Assembly and the Treasury.
The move comes after a two-month stalemate over the Division of Revenue Bill, 2019, which had crippled county government services due to accumulated billions of shillings in overdue debt owed to contractors and suppliers.
CoG Chair Wycliffe Oparanya, the Kakamega Governor, had warned of an imminent shutdown had the stalemate persisted beyond the week.
According to a joint statement read by Leaders of Majority and Minority Kipchumba Murkomen and James Orengo respectively, the Senate made the 'painful but patriotic decision' to advise its negotiators to agree to the allocation of Sh316.5 billion.
The standoff between the National Assembly and the Senate over the allocation had paralyzed activities in the counties, leading the Council of Governors (CoG) to announce a complete shutdown from September 16.
Essential services such as provision of healthcare have also been affected, and suppliers of goods and services have seen low sales due to the prolonged cash crisis in the counties.
"The country is faced with the real prospect of a shutdown of services at the counties. For this reason...the Senate has made the painful but patriotic decision to advise our negotiators at the ongoing mediation process to agree to the allocation of Sh316.5 billion as the equitable share of nationally raised revenue to the allocation to the counties," the Senate said in a joint statement.
