Governors, State Fail to Agree on Revenue Sharing
Conversations among governors and various stakeholders, including the Treasury and the Commission on Revenue Allocation (CRA), regarding the distribution of revenue between national and county governments, have come to a standstill.
On Tuesday, Anne Waiguru, the chairperson of the Council of Governors (CoG), mentioned that the matter was brought to the Intergovernmental Budget and Economic Council (IBEC), led by Deputy President Rigathi Gachagua. However, no agreement was reached regarding the distribution of revenue for the financial year 2024/25.
On Tuesday, Anne Waiguru, the chairperson of the Council of Governors (CoG), mentioned that the matter was brought to the Intergovernmental Budget and Economic Council (IBEC), led by Deputy President Rigathi Gachagua. However, no agreement was reached regarding the distribution of revenue for the financial year 2024/25.
“We however note with concern, that after lengthy discussions and analysis of the proposed recommendations by the task team, the three parties retained divergent positions on their proposed figures for shareable revenue,” the CoG chair stated.
The Treasury suggests a fair share of Ksh.391 billion, whereas the CRA recommends Ksh.398.14 billion.
The Council of Governors has suggested an equitable share of Ksh.439.5 billion and a Road Maintenance Levy Fund (RMLF) of Ksh.10.52 billion in the meantime.
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“Given the foregoing and upon careful consideration of the matter at hand, the Council hereby declares a stalemate on the discussions around vertical sharing of revenue. In this regard, we urge that our proposal of Ksh.450 billion to Counties be adopted,” said Waiguru.
The governors argue that county governments are protected from the increasing impact of inflation in different decentralized sectors, the escalating costs of operations and maintenance in counties, and the necessity for a proportional adjustment to facilitate revenue growth.
They support their suggested amount by emphasizing the importance of allocating funds for the annual salary increments of county employees and setting aside funds to address emerging expenses that may arise in the counties.
These encompass the recently required contributions to the National Social Security Fund (NSSF), Social Health Insurance Fund (SHIF), and Housing Levy.
“We therefore call upon the national government to reconsider their position given the aforementioned budgetary items. This will allow counties to execute their mandate and ensure efficient service delivery on their assigned functions,” added Waiguru.
Governors, State Fail to Agree on Revenue Sharing
