Devolution under threat due to funds owed to counties, CoG warns

Kiambu, Tuesday April 25, 2023 

K.N.A By Wangari Ndirangu

The Council of Governors (CoG) is planning a Children's Devolution Conference scheduled to take place from 3rd to 6th July, 2023 in Kiambu County.

The proposed Theme for the Children's Conference is "Empowering young voices: A Decade of Devolution and the Future of Children in Kenya."

In a press statement Monday, the CoG chairperson Anne Waiguru further said that the conference will be a precursor of the planned Devolution conference that will be held on the 15th - 19th August, 2023 in Eldoret, Uasin Gishu County.

Waiguru who issued the statement after completion of Council Meeting to discuss critical issues of common interest to County Governments Monday, noted that despite the ongoing plans of the two major conferences, devolution was under threat from the National Government.

The COG chair noted that as of Monday 24th April 2023, the National Treasury had not disbursed a total of Sh94.35 billion to counties for February, March and April Allocations.

The arrears, she said, were Sh31.45 billion owed to 47 Counties for February 2023 allocation, Sh29.6 billion for March and Sh33.3 billion for this month.

“The delay is unprecedented in the history of devolution and negates the spirit of the meeting held in Naivasha between the President and the Governors,” she said in the statement.

Waiguru who is also the Kirinyaga Governor, speaking on behalf of the council challenged the National Treasury CS to immediately release the Sh94.35 billion owed to County Governments without further delay.

“The Council of Governors hereby issues a 14-day notice to shut down Counties if February, March and April arrears are not released within two weeks,” she said.

The chairperson also gave a notice to citizens of Kenya, saying that due to the failure of the National Treasury to disburse the funds, County Governments will not be able to deliver services as expected.

The Council, she added, has conveyed dissatisfaction with the manner in which the Senate voted on the Division of Revenue Bill, 2023, rejecting an amendment that would have seen the devolved units get Sh407 billion as equitable share in FY 2023/24.

“This is a new row for a House of Parliament Constitutionally mandated to represent the Counties and serve to protect devolution. We note with concern that in the history of devolution, the Senate has never voted against the spirit of devolution as far as the increase of resources is concerned”, Waiguru said.

The council called on the Senate to uphold their primary mandate to ensure that County Governments are well-resourced in order to perform their functions optimally.

On the proposed attempt by the National Government to tamper with Devolution by seeking to micromanage County Governments mandates on revenue collection as prescribed under Article 209(4) of the Constitution, the chair said that there is no reason why County Governments should be submitting particulars of new taxes to the National Treasury and CRA.

“Chapter 12 of the COK gives the two levels of government distinct mandates on the revenue raising capabilities. Therefore, the bill before Parliament is unconstitutional. Counties are not subservient to the National Government,” she reiterated, adding that it should never be mandatory for counties to submit a list of all taxes, fees and levies to the Cabinet Secretary, National Treasury.

On the review of the Public Finance Management act, 2012, Waiguru said the Ministry of Finance and the National Treasury should be separated, adding that in order to address this challenge and many other issues clawing back on devolution, a comprehensive review of the Public Finance Management Act of 2012 should be done.