In a significant development, the Mediation Committee of Kenya’s National Assembly and Senate has approved an additional Ksh 2 billion for counties. This increase brings the total allocation to Ksh 387 billion for the 2024/2025 financial year. The decision aims to address economic challenges and ensures that counties have adequate resources to meet their needs. The committee’s agreement comes after extensive discussions aimed at balancing fiscal responsibility with the pressing demands of local governance.
President William Ruto during the State of Nation Address at the Parliament of Kenya: photo courtesy
Initially, the National Assembly proposed a budget of Ksh 380 billion for counties. However, senators argued for a higher allocation of Ksh 400 billion. They cited operational difficulties faced by counties under the proposed budget. This disagreement led to the formation of a mediation committee tasked with resolving the impasse. The committee, co-chaired by Kiharu MP Ndindi Nyoro and Mandera Senator Ali Roba, worked diligently to find common ground.
During negotiations, the committee focused on balancing the need for fiscal responsibility with the urgent needs of local governance. After extensive discussions, they reinstated last year’s allocation of Ksh 385 billion and added Ksh 2 billion to cushion counties against inflation. Nyoro emphasized that counties should not receive less funding than they did in the previous financial year. This sentiment reflects a growing recognition of the financial pressures facing local governments.
Despite this agreement, challenges remain ahead. The next step is ensuring the disbursement of these funds. MPs must secure a two-thirds majority in both houses to amend the Division of Revenue Bill 2024. This bill is crucial for releasing the funds to counties. The requirement for a supermajority adds complexity to an already intricate legislative process.
Political reactions to this decision have been varied among lawmakers. Some senators have expressed concerns about the National Treasury’s insistence on limiting allocations. Nairobi Senator Edwin Sifuna criticized this stance, questioning Parliament’s role if decisions rest solely with Treasury officials. Other members highlighted the importance of realistic budgeting given past revenue performance issues.
The approved increase in county funding reflects a commitment to addressing local governance needs during challenging economic times. However, successful implementation will depend on navigating legislative hurdles and maintaining bipartisan support. As discussions continue, it remains essential for lawmakers to work collaboratively to ensure that counties receive the necessary resources.
The additional Ksh 2 billion allocated to counties is a positive step towards meeting local governance needs in Kenya. However, it is crucial that MPs work together to overcome legislative challenges and ensure timely disbursement of funds. The future of county funding will depend on effective collaboration among all stakeholders involved.
