Senators and MPs are at odds over how much money Kenya’s counties should receive under the Division of Revenue Bill. According to the People Daily, the Senate proposed increasing county allocations to Ksh465 billion, up from the Ksh405 billion already approved by the National Assembly. MPs, however, rejected the proposal, citing the country’s tight financial situation.
Senate Proposes Ksh465 Billion for Counties
The Senate argued that counties face several urgent costs that justify the increased funding. Senate Finance Committee Vice Chairperson Tabitha Mutinda explained that counties must cover Ksh34 billion in unavoidable expenditures, including the Housing Levy, NSSF contributions, industrial parks, health promoters’ salaries, doctors’ salary agreements, and wage increases through the Integrated Payroll and Human Resource System.
“These counties are being forced to shoulder non-discretionary expenditures imposed by national government directives,” Mutinda said. Senate Majority Leader Aaron Cheruiyot added that many counties are struggling financially, with local revenues falling short of their spending needs.
“About 34 out of 47 counties spend more than 50% of their shareable revenue on recurrent expenditure,” Cheruiyot said. “Fewer than 10 counties meet the minimum 25% legal requirement for development spending.”
MPs Cite Financial Constraints
National Assembly Majority Leader Kimani Ichung’wah argued that the country cannot afford such a large increase. “It may not be practical to increase by Ksh60 billion. We thought it’s only fair to reject this amendment and move into early mediation,” he said. His motion was seconded by Bumula MP Wanami Wamboka, who described the proposed increase as “abnormal.”
MPs emphasized the importance of fiscal prudence, especially since a significant portion of county allocations is spent on salaries rather than development projects. “Why should we send that much if over half is used to pay 300,000 to 400,000 people, excluding millions of others?” Ichung’wah questioned.
Counties’ Recurrent and Development Spending Concerns
The Senate highlighted that counties are burdened with recurrent costs that reduce their ability to fund development projects. The high spending on salaries limits investments in infrastructure and essential services. Cheruiyot warned that if counties were run as businesses, many would be in financial distress due to low local revenue and high expenditure on recurrent costs.
Audit Reports and Revenue Projections
Migori Senator Eddy Oketch criticized the use of outdated financial data in determining county allocations. He noted that if the latest audit reports were considered, county allocations could reach Ksh470 billion. “It is unjust to propose allocations based on outdated financial years when revenue projections show collection at Ksh2.7 trillion,” Oketch said.
