Counties Risk Losing Ksh 50B as Senate and MPs Clash Over Bill

The 47 devolved units are staring at a loss of Sh50.5 billion meant for the implementation of donor-funded projects as senators and MPs clash over a crucial Bill.

Friday March 28, at the Senate plenary special sitting, members accused their National Assembly counterparts of frustrating the passage of the bill and branded them enemies of devolution. Senators took on the MPs for undermining devolution by grabbing funds meant to develop counties.

Senate Majority Leader Aaron Cheruiyot said it was unfortunate that the County Government Additional Allocation Fund Bill could be used as a basis to undermine devolution, with the funds delaying for the more than eight months.

Edwin Sifuna said that while senators are also MPs, it is they (senators) who took an oath to defend counties.

Despite the two Houses agreeing to exclude RMLF from the Bill, they have still clashed on other grants and donor funds that should go to the counties. The fresh standoff comes barely three months to the end of the financial year, a move that could further delay the unlocking of the funds.

However, the senators have also approved their version, giving the devolved units Sh50.5 billion in the current financial year. In the passed version, the senators have given the counties Sh8.41 billion from the National Government’s share of revenue in the 2024-25 financial year.

In addition, the senators gave the counties S116.09 million from the proceeds of court and Sh42.01 billion from proceeds of loans and loans from development partners.

Last week, governors threatened to shut down counties if the county funds ‘deducted’ by the MPs were not reinstated. “From this deduction, county governments will lose a whooping Sh38.4 billion of the Additional Allocations, of which Sh24 billion are Conditional Grants,” CoG Vice Chairperson Mutahi Kahiga said.