NAIROBI, Kenya, Feb 23 — The Commission on Revenue Allocation (CRA) has expressed fears that if the Budget Policy Statements (BPS) is passed as it is, it may weaken devolution.
Speaking before the Senate Budget Committee chaired by Mandera Senator Ali Roba, CRA’s Finace Director Linet Mutinda said the proposed allocation of Sh385 billion is insufficient and not commensurate to the Sh3.3 trillion national budget.
“We cannot talk of enhancing the devolution and at the same time fail to fund it well,” she told senators.
“The BPS adjusts upwards the equitable share allocation to the national government. It is then not equitable sharing if national government is only willing to add Sh15billion shillings to the counties which in essence handles critical functions,” Mutinda said.
CRA, CoG proposals
She proposed that Paliament adopts CRA’s proposal to add counties Sh37.4 billion to increase the allocation to Sh407 billion.
Mutinda further stated that the commission was concerned over a huge chunk of money that is retained at the national government for functions which are devolved such as health and agriculture.
She called on the Senate to intervene and ensure more money is channeled to the devolved units.
“Healthcare is largely a devolved function. Preventive and promotive healthcare is the mandate of the county governments,” she pointed out.
“The BPS proposes to increase the allocation to the health sector from Sh125 billion to Sh154 billion. We are therefore suggesting that the extra funds be reallocated to the counties to perform the function,” she said.
CRA had recommended that the counties receive 407 billion shareable revenue, but the National Treasury remained adamant that it could only avail Sh385 billion.
The Council of Governors also appeared before the committee and rejected the BPS proposal.
Kakamega Governor Fernandes Barasa who doubles up as CoG Finance Committee Chairperson said governors had rejected the proposal to have shareable revenue increased by only Sh15 billion.
“Our stand remains that the shareable revenue should be Sh425 billion for the counties,” he said.
“If you look at the extra money that is being retained at the national government for so devolved functions, it is in excess of Sh55 billion. This is money that belongs to counties,” Barasa said.
