Revenue sharing stalemate as MPs demand governors withdraw road levy case
By Maureen Kinyanjui |
The dispute arises from county leaders' claims that the National Assembly acted unconstitutionally by denying them funds from road maintenance taxes.
The standoff between Members of Parliament and governors over the control of the Sh10.5 billion Road Maintenance Levy Fund has stalled efforts to resolve a larger dispute over equitable revenue sharing with counties.
The ongoing court case, filed by the Council of Governors, has caused a deadlock within the 18-member mediation committee assigned to broker a consensus on revenue allocation.
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On Tuesday, the National Assembly members in the committee, co-chaired by Kiharu MP Ndindi Nyoro and Mandera Senator Ali Roba, insisted that the Council of Governors must withdraw the case to allow the committee to make progress.
"Senate should have a conversation with the Council of Governors and deal with the elephant in the room, which is the actual figures on the revenue share to counties and the court issue over the Roads Maintenance Levy," said Funyula MP Wilberforce Oundo.
Justice Lawrence Mugambi had previously frozen the funds until the governors' case is resolved, also suspending the National Assembly's August decision to exclude governors from funds managed by the Kenya Roads Board.
Some members, however, oppose any concessions to the governors.
Not so close
Senator Roba, the co-chair, dismissed suggestions of talks between senators and the Council of Governors to withdraw the case.
"It's not foreseeable that the Senators will go and have a discussion with the governors over the Roads Maintenance Levy Fund. The governors and senators are not as close as you might think," he said.
The dispute arises from county leaders' claims that the National Assembly acted unconstitutionally by denying them funds from road maintenance taxes, despite county roads being under their jurisdiction.
MP Nyoro urged the mediation committee to consider the legal complexities that may emerge as they work toward a final agreement.
"We must not run from the underlying issues because that will be a dereliction of duty. Unlocking funds requires both political and technical solutions," he said.
Rarieda MP Otiende Amollo warned that overriding the presidential veto on the County Allocation Revenue Allocation Bill, which proposed an equitable share of Sh380 billion, would be a difficult challenge.
"We have to agree in order to persuade the House to agree with us. Otherwise, it will be a dereliction of duty," he said.
Further complicating the situation, Migori Senator Eddy Oketch expressed concern over the recent Sh20 billion budget cut to counties, following the suspension of the Finance Bill, 2024.
He argued that the national government, unlike the counties, can borrow funds to cover the shortfall.
"It's in bad faith to take Sh20 billion from counties while the national government claims a Sh346 billion cut without considering the impact on counties," Oketch said.
Kitui Central MP Makali Mulu warned that the Finance Bill's suspension could result in an unprecedented financial strain.
"Should the shortfall be taken by the national government or the counties? If we sort out the issue, we will be done here," he noted.
As the mediation committee prepares to reconvene next week, counties face increased financial pressure as the revenue-sharing deadlock continues.
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