This archive report was first published on 16 May 2020.
On May 16, 2020, the Supreme Court delivered a significant ruling that has far-reaching implications for the allocation of revenue in Kenya. The court ruled that the Executive cannot spend funds before the National Assembly and Senate agree on the division of revenue.
The decision was made in a case filed by the Council of Governors on behalf of the 47 counties, seeking the top court's advisory opinion on how counties should share revenue from the national government and resolve the perennial conflict between the Senate and National Assembly over the Division of Revenue.
Chief Justice David Maraga, justices Mohammed Ibrahim, Smokin Wanjala, Njoki Ndungu, and Isaac Lenaola delivered the ruling, which stated that the National Assembly cannot enact the Appropriation Bill until the Division of Revenue Bill has been passed. This means that Parliament must first agree and pass legislation on the amount of money to be shared with the 47 counties before allocating funds to the national government.
The court also ruled that the Commission on Revenue Allocation (CRA) recommendations on the formula for sharing revenue between the two levels of government are not binding to both the National Assembly and the Senate. However, the judges emphasized that CRA's recommendations should be accorded serious consideration while debating the Division of Revenue Bill.
Furthermore, the Supreme Court warned that should Parliament fail to agree in future over the division of revenue, any person will be at liberty to petition the High Court to order for its dissolution for violating the Constitution.
Ultimately, the ruling aims to promote transparency and accountability in the allocation of revenue, ensuring that counties receive their fair share of funds.
