This archive report was first published on 22 September 2019.
On September 22, 2019, President Uhuru Kenyatta signed the Division of Revenue Bill 2019 into law, bringing an end to a contentious period between the National Assembly, Senate, and governors over revenue allocation.
The breakthrough came when the Senate agreed to accept the National Assembly's proposal to disburse Sh316 billion to counties, rather than their initial offer of Sh327 billion.
The impasse had reached the Supreme Court, which declined to make a ruling but instead urged the two chambers of Parliament to discuss and agree on the figures.
With the resolution of the cash standoff, counties can now access the disbursed funds and clear their pending bills, which have become a major concern for contractors and suppliers.
President Kenyatta directed the counties to pay their outstanding bills to the Kenya Medical Supplies Agency (Kemsa), which have disrupted medical provisions and threatened the universal healthcare plan.
Counties have also been criticized for reckless spending, wasteful projects, and corruption, with many unplanned projects initiated but never completed.
Furthermore, counties have failed to raise revenues, with the Auditor General's office criticizing them for their inability to meet revenue targets and declining collections year on year.
For example, in 2017/18, counties collected only Sh32.5 billion against a target of Sh49.2 billion.
With the resolution of the cash standoff, counties must now deliver services and use resources prudently, putting an end to grand corruption and wastage that have become hallmarks of county governments.
