National

Fresh row brews after counties ask Treasury for more money

Council of Governors (CoG) chairperson Anne Waiguru during a press conference in Nairobi on November 22, 2023. (Photo: Council of Governors)

By Apollo Ochieng | Tuesday, February 6, 2024

The Council of Governors (CoG) accuses the National Treasury of failing to adopt a proposal by governors to increase the allocation to counties in the 2024/25 financial year.

A fresh row is brewing between governors and the National Treasury over the national government's reluctance to allocate at least Sh450 billion to counties in the next financial year.

Council of Governors (CoG) Chairperson Anne Waiguru on Tuesday accused the National Treasury of failing to adopt a proposal by governors to increase the allocation to counties in the 2024/25 financial year.

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Governors had, in their proposals to the National Treasury, asked for about Sh439.5 billion in equitable revenue to the devolved units but the national government proposed Sh391 billion and the Commission on Revenue Allocation (CRA) Sh398.14 billion.

However, a meeting convened by the three entities to resolve the matter failed to reach a consensus, with governors declaring a stalemate.

Waiguru said the CoG and other stakeholders, including the National Treasury and the CRA, have spent the last three weeks discussing revenue-sharing between the two levels of government. The discussion was been advanced to the Intergovernmental Budget and Economic Council (IBEC) chaired by Deputy President Rigathi Gachagua.

"However, no consensus was reached on how the revenue will be shared for the 2024/25 financial year. We note with concern that after lengthy discussions and analysis of the proposed recommendations by the task team, the three parties retain divergent positions on the proposed figures of shareable revenue," Waiguru said.

The county bosses asked that their proposal be adopted to prevent delays in service delivery.

Waiguru said the CoG's position is buttressed by the need to ensure counties are cushioned against inflation, rising operation and maintenance costs, the inability to pay salaries, and other added expenditures.

"The CoG urges the national government to reconsider its position and sufficiently fund counties to allow them to execute their mandate and ensure efficient service delivery. In this regard, we urge that our proposal of Sh450 billion to counties is adopted," Waiguru said.