Mediation committee seeks to resolve standoff over Sh15 billion slashed county funds

The disbursement of Sh61 billion allocated to county governments in the current Financial Year 2024-2025 is in jeopardy following a growing dispute between the Senate, the National Assembly, and the Council of Governors (CoG).

The conflict stems from proposed amendments by the National Assembly that would slash the funds by Sh15.4 billion, with the mediation committee now stepping in to resolve the issue.

The 18-member mediation committee, which convened for its first sitting on Wednesday is tasked with finding a compromise after the Senate passed the Sh61.9 billion allocation, only for the National Assembly to reduce it to Sh46.5 billion.

The Sh15.4 billion reduction includes cuts from the Road Maintenance Levy Fund (RMLF), community health programmes, and key infrastructure projects in the counties.

Kiharu MP Ndindi Nyoro, who co-chairs the mediation committee, pointed out the importance of supporting devolution and finding a fair resolution.

"There is no contestation about who supports devolution. We all support and we all want counties to get money. However, the final decision lies with the respective plenaries," he said, stressing that the committee's role is to mediate, not decide the outcome.

Senate Vice-Chairperson of the Finance and Budget Committee Tabitha Mutinda echoed Nyoro's call for an open-minded approach.

"I would request honourable members that we have an open mind when it comes to the factual issues at hand so that we not only look at this issue from one particular perspective but look at it wholesomely," she said.

The CoG has opposed the cuts, particularly the Sh10.5 billion taken from the RMLF, which is essential for road maintenance in counties.

Court petition

The governors have filed a case at the High Court challenging the National Assembly's decision, arguing that the withholding of these funds is unconstitutional.

Marsabit Governor Mohamud Ali, who filed the case on behalf of the CoG, maintains that they will allow the court case to proceed.

"Let us finish this matter once and for all so that we do not have the same problem in future," Mohamud stated.

The governors are seeking an order to prevent the Kenya Roads Board from disbursing the funds to the Kenya Urban Roads Authority and Kenya Rural Roads Authority until the case is resolved.

The dispute over the RMLF has added complexity to the mediation process.

MPs, including Soy MP David Kiplagat, have raised concerns that proceeding with mediation while the case is in court could potentially prejudice the outcome.

"It is incumbent upon this committee that we don't proceed with this matter until the case is heard and determined," Kiplagat said.

In response, senators have called for the mediation to continue, arguing that the RMLF issue should be temporarily shelved to focus on other aspects of the bill.

"We agree that the issue of RMLF is sub judice. We are ready to shelve it and focus on other issues in the Bill," said Homa Bay Senator Moses Kajwang.

The National Assembly's amendments have not only affected the RMLF but also slashed allocations for community health promoters, county industrial parks, and the completion of county headquarters in five counties.

These cuts threaten to disrupt several vital county programmes.

Despite the divisions, both MPs and senators acknowledge the importance of the funds for counties, and the mediation committee has vowed to continue deliberations.

"Even after we meditate here, we are not the final arbiters of the matter before us. The final arbiters are the respective plenaries," Nyoro told the committee.

The dispute has raised questions about the relationship between the two Houses of Parliament and the future of devolution.

With only a few days remaining before the proposed disbursement of funds, the outcome of the mediation process remains uncertain.

The committee will reconvene today (Thursday) in hopes of finding a resolution that ensures county governments receive the critical funding they need for development.