Looming Ruto - Governors Standoff as Counties Contest Sharable Revenue

Ezra Manyibe | 1 week ago
Council of Governors Chairperson Anne Waiguru makes her statement at the end of the three-day Governors and Deputy Governors Induction Conference in Mombasa on September 17, 2022. |Courtesy| The Nation|

The Council of Governors (CoG) has decried pending bills and the ever-ballooning wage bill amid implementation of new taxation measures by the national government.

Led by Kirinyaga Governor and CoG Chairperson Anne Waiguru, the county bosses now want Ksh450 of sharable revenue allocated to them, failure to which services at the counties may be crippled.

Appearing before the Senate Finance Committee on Tuesday, April 23, 2024, the governors explained that the new Housing Levy and National Social Security Fund (NSSF) deductions would cost the county governments an additional Ksh4 billion and Ksh3 billion respectively.

Contributions towards the new Social Health Insurance Fund (SHIF) and a possible implementation of the existing Doctors Collective Bargain Agreement (CBA) would balloon the county wage bills further, according to the governors.

"I want to look doctors straight in the eye and tell them that if we don't get this money, we will be lying to them even if we signed a new CBA, we won't be able to pay them as counties," Tharaka Nithi Governor and CoG Health Committee Chairperson Muthomi Njuki stated.

Governor Waiguru on her part argued that the health docket was yet to be fully devolved as stipulated in the Constitution.

"I think what this boils down to is do we believe in devolution or not, do we need to have counties or not. We are not asking for money to spend on unnecessary things, we are asking for money to spend on basic stuff," she said. 

"When we look at the ministries you will find a lot of money that is set aside for functions that are devolved, if you go there we can get money that can go to counties," she added. 

CoG Vice Chairperson Ahmed Abdullahi questioned why the national government only disbursed Ksh6 billion from the total amount added to counties as part of the sharable revenue.

"How do we give counties Ksh.6B out of the increase of Ksh.376B, knowing the functions that have been devolved?  that is only 1.5%." 

Senate Finance Committee Chair - Mandera Senator Ali Roba while sympathising with the governors assured them of the house's support in the pursuit of the additional Ksh391 billion allocated to counties in the budget policy statement.

He further cautioned governors against making populist declarations and commitments in public without due thought and process.

"Whereas the difference of what is in the bill and what you have proposed is huge, I think it's rational, the Senate will do its bit, I can't guarantee you that you will get what you are asking for but we will fight to give you more money,” Senator Roba said.

Related Stories