Governors protest Treasury's plot to cut budgeted funds for counties

Governors have faulted the National Treasury for reducing already budgeted funds to devolved units in the 2024/2025 budget.

The angry county chiefs, through the Council of Governors on Friday, said the treasury's decision to reduce the Sh400.12 billion budgeted for counties by Sh5 billion is unacceptable and a setback to devolution and delivery of services to Kenyans.

Through the CoG Chairperson Anne Waiguru who led the governors in a meeting in Nairobi, the county governors regretted the move, terming it as one that undermines the spirit of devolution.

"This unilateral decision not only undermines the spirit of devolution but also jeopardises the essential services delivered to millions of Kenyans," said Waiguru.

The governors raised the matter while citing a letter sent to the National Assembly on the rationalisation of the FY 2024/25 budget. "We note with concern that the National Treasury intends to reduce the County Equitable Share by Sh5 billion from the Sh400.12 billion allocated in the Division of Revenue Act (DoRA), 2024."

Governors and officials from the Ministry of Health during a meeting on Friday. The governors have faulted the National Treasury over a decision to reduce already budgeted funds to devolved units in the 2024/2025 budget. (Photo: CoG)

According to Waiguru who was flanked by Tharaka Nithi Governor Muthomi Njuki, Machakos' Wavinya Ndeti and Kwale's Fatuma Achani, it is important that the National Treasury is guided by the provisions of section 5(1) of the Division of Revenue Act, 2024 which stipulates that whenever there is a shortfall in the revenue raised nationally, then the shortfall shall be borne by the National Government and not counties.

"We therefore wish to state unequivocally that the Council rejects this proposal in totality and demands that the National Treasury retains the County Equitable Share as enumerated in the Division of Revenue Act (DoRA), 2024," said Waiguru.

They also demanded for immediate release of an equitable share of revenue owed to County Governments for May and June 2024 amounting to Sh63.6 billion to ensure uninterrupted service delivery at the county level.

Health Cabinet Secretary Susan Nakhumicha during a meeting with governors on Friday in Nairobi. they discussed the status of implementation of Universal Health Coverage. (Photo: CoG)

The county heads also concluded a consultative meeting with Health CS Susan Nakhumicha where they discussed the status of implementation of Universal Health Coverage. In this regard, they agreed that the Ministry of Health will ensure that they transfer funds allocated to County Health Promoters (CHPs) in the Special Purpose Account opened by County Governments commencing the Financial Year 2024/25.

They also agreed that the Ministry of Health shall support County Governments in the rollout of a comprehensive integrated health information system for the facilitation of health service delivery. "This will be done through the provision of requisite infrastructure for electricity and internet connectivity," said Waiguru.

In the meeting, there was also agreement that the Ministry of Health shall cover all costs pertaining to the rollout and maintenance of the Integrated Health Information system and that the Ministry of Health shall plug into the existing systems in the counties in the execution of the Health Information System.

"Ministry of Health shall ensure that Sh8 billion owed to counties by the defunct National Health Insurance Fund (NHIF) will be paid."

The Ministry of Health in collaboration with County Governments shall also conduct a public campaign on the rollout of registration of citizenry to the Social Health Authority (SHA).