Lawmakers have resolved to allocate Kes.387 billion to county governments for the Financial Year 2024/2025, marking an increase of Kes.2 billion from the previous year.
The agreement came after prolonged discussions within an 18-member mediation committee co-chaired by Kiharu MP Ndindi Nyoro and Mandera Senator Ali Roba.
The committee attributed the increment to harsh economic conditions affecting counties. Nyoro emphasized that the decision accounted for factors such as revenue performance, inflation, and rising operational costs faced by devolved units.
“We are facing the reality as it is, without sugarcoating. While we are willing to allocate more funds to counties, revenue shortfalls present significant challenges,” the joint committee stated.
Nyoro added, “After thorough deliberations and hard negotiations, we reinstated last year’s allocation of Kes.385 billion and added an additional Kes.2 billion.”
The mediation resolved a heated standoff between the Senate and the National Assembly over the allocation. While the Senate demanded Kes.400.1 billion, the National Assembly insisted on Kes.380 billion, creating tensions that threatened to disrupt county operations.
Heated Talks
During the talks between senators and members of the Parliament’s Budget Allocation Committee, Nairobi Senator Edwin Sifuna criticized the suggestion that Treasury Cabinet Secretary John Mbadi, with State House’s approval, would make the final decision on county allocations.
“We as parliament should not be the ones ceding the power that is vested in parliament to other organs of state. It cannot be possible that a Cabinet Secretary for Treasury is the one telling us that the only money he can give county governments is Ksh380 billion,” Sifuna said.
“Then what is the role of parliament We should dissolve parliament and let Mbadi make all the decisions he wants to make on the money that he wants to send wherever,” he added.
CS Mbadi played a key role in the discussions, urging governors to accept the National Assembly’s proposal. Mbadi acknowledged the legitimacy of demands for increased funding but stressed that the economy could not support the Kes.400 billion sought by senators and county governments.
This agreement highlights the delicate balance between addressing counties’ financial needs and navigating the country’s strained fiscal environment. The Kes.387 billion allocation is expected to provide crucial support for devolved functions while considering the broader economic challenges.
