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Cash Crunch Looms for Counties as National Assembly and Senate Clash Over Division of Revenue Bill

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 17 September 2019.

County governments could remain in financial limbo as the National Assembly and Senate continue to disagree over the Division of Revenue (DoR) Bill. The Assembly passed the Bill with a clause that backdates the commencement date to July 1, while the Senate wants it to take effect immediately after presidential assent.

According to Senate Finance and Budget Committee Chair Mohammed Mahamud, the National Assembly 'sneaked' the backdating clause into the Bill, which was not part of the mediation talks between the two Houses. 'They have become rogue,' Mahamud said.

Kitui Central MP Makali Mulu, however, defended his colleagues, saying they were advised to backdate the Bill to allow counties to receive their monies as scheduled. 'You know the financial year starts in July. What we did was to cushion ourselves in law so that when National Treasury releases monies for July, there is a legal framework,' Mulu explained.

The dispute has left the 47 devolved units without cash from equitable shareable revenue for the past two months. Senators accused the National Assembly of being inconsiderate to the plight of Kenyans who are facing financial crunch.

Supreme Court Mutula Kilonzo Jrn, a member of the mediation committee, said the National Assembly's action is meant to legitimise the Appropriation Act 2019, which is being contested by senators in the Supreme Court.

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