Tuesday, November 12, 2024 – The Mediation Committee on the Division of Revenue (Amendment) Bill, 2024 remains deadlocked in negotiations regarding the revenue allocation between the National Government and the Counties.
Mandera Senator Ali Roba (right) alongside Kiharu MP Ndindi Nyoro (left) During The Revenue Appropriations Committee Sitting On 12 November 2024
Senators and Members of Parliament in the committee continue to hold firm to their initial positions with the Senate pushing for an allocation of Ksh. 400.12 billion for Counties while MPs insist on capping the amount at Ksh. 380 billion.
Today, the committee co-chaired by Mandera Senator Ali Roba and Kiharu MP Hon. Ndindi Nyoro convened for the second day of mediation talks to reach a compromise on the contentious issue.
Despite repeated discussions, both sides remained steadfast refusing to shift from their respective stances. The Senate maintains that Ksh.400.12 billion is essential to meet the needs of devolved units whereas MPs argue that budgetary constraints necessitate a lower figure.
The Parliamentary Budget Office (PBO) presented revenue collection trends and insights into County-level revenue generation during the meeting, aiming to provide context and inform the ongoing deliberations. The analysis was intended to offer a clearer understanding of the fiscal landscape as the mediation continues.
During the meeting, the National Assembly Members urged the Senators to engage the Council of Governors (CoG) in dialogue to resolve pending legal cases that could complicate the revenue discussions.
However, the Senate delegation led by Senator Roba rejected the suggestion clarifying that they would not involve themselves in disputes between the National Assembly and the CoG. They emphasized the need for the independence of the mediation process from any ongoing legal confrontations.
Hon. Nyoro, the Co-Chair, further emphasized the weighty matter before them, which also has legal implications to be considered, as Members decide on the way forward.
“I hope Members we have seen it’s not just about making a decision, what follows after the decision is more important. We must not take the easy route for the committee. We must take the hard route that offers a solution and the real solution is getting the monies unlocked, and the unlocking of the money is both a technical and a political process.” Said Hon. Nyoro.
The discussions on the Division of Revenue (Amendment) Bill, 2024 unfold amidst significant economic policy shifts including the recent withdrawal of the Finance Bill, 2024.
The committee adjourned to allow Members to consider various proposals that might help break the stalemate at the next meeting.
With a 30-day deadline from Thursday, November 7, 2024, to resolve, the Committee faces pressure to find a compromise.