Counties are facing financial uncertainty as a deadlock persists over the 2024 revenue allocation between the Senate and the National Assembly.
Mediation talks involving representatives from both houses ended without consensus, casting a shadow over county funding and threatening to disrupt essential services at the local level.
The impasse centers around the allocation of shareable revenue to counties, with the Senate advocating for Ksh 400 billion, while the National Assembly holds firm on Ksh 380.1 billion due to perceived budget constraints.
This funding disagreement arises amidst a backdrop of economic challenges and budget cuts that the government has deemed necessary.
There was broad consensus around a higher allocation figure, but shifting fiscal realities have prompted the National Assembly to propose a reduction.
According to National Assembly Budget Committee Chair Ndindi Nyoro, the recent protests in June and the withdrawal of the controversial Finance Bill led to a downward adjustment of Kenya’s national budget, from Ksh 4.2 trillion to Ksh 3.8 trillion.
Nyoro emphasized that with a smaller budget, difficult choices must be made, including potential cuts to county funding.
Senate Finance Committee Chair Ali Roba and Nyoro have both stressed the importance of resolving the issue amicably, urging the 18-member mediation committee to bridge the gap.
However, senators remain resolute in their stance that counties should receive Ksh 400 billion, as originally discussed.
Nairobi Senator Edwin Sifuna, in particular, has been vocal about the Senate’s opposition to any reduction below last year’s allocation of Ksh 385 billion.
He argues that counties require stability in funding to deliver on their mandates, calling on the National Assembly to offer a clear explanation if any cutbacks are genuinely necessary.
Sifuna’s sentiments are echoed by other senators, including Migori’s Eddy Oketch and Veronica Maina, who have underscored the risks of underfunding counties.
They argue that stable and predictable funding is crucial for the continued success of devolution, a system designed to empower local governments and bring services closer to the people.
Devolution is widely regarded as one of Kenya’s most important reforms, and these senators caution that inadequate funding could undermine the progress made so far.
According to them, a long-term financial solution for counties is essential to avoid year-to-year uncertainties that can impede planning and service delivery.
On the other side, members of the National Assembly, like Funyula MP Godfrey Oundo, acknowledge the concerns raised by the Senate but stress the importance of responsible budgeting.
Oundo emphasizes that while additional funds are needed, counties must also be accountable and transparent in their expenditures.
He points out that cases of mismanagement have previously plagued county administrations, which only adds to the challenge of securing additional funding.
Beyond the current impasse, this disagreement raises broader questions about Kenya’s financial priorities and the sustainability of devolution in the face of economic challenges.
While the constitution guarantees that counties receive at least 15% of national revenue, the practical needs of counties often exceed this minimum requirement, especially as they expand services in areas like healthcare, agriculture, and infrastructure.
Without adequate resources, county governments are forced to scale back these services, directly impacting citizens who rely on them.
The Senate argues that by investing in county governments, Kenya is strengthening grassroots governance, which in turn supports the broader goals of economic growth and social development.
They view the proposed Ksh 400 billion as essential to maintaining progress and stability in county-level governance.
However, National Assembly members highlight Kenya’s broader economic constraints, emphasizing the need to balance local needs with national fiscal responsibility.
The ongoing standoff also underscores a persistent challenge within Kenya’s devolved governance framework and the need for improved intergovernmental relations.
Finding a sustainable approach to county funding will require not only consensus-building but also a shift toward more transparent and collaborative decision-making processes between the Senate and the National Assembly.
Many leaders believe this could prevent similar stalemates in the future and foster a more resilient devolution model.
As the mediation committee reconvenes, county governments and residents await a resolution.
Both sides of the debate recognize the stakes involved and the need for a solution that upholds the spirit of devolution while accommodating Kenya’s fiscal realities.
If the current deadlock remains unresolved, counties will continue to face funding shortages that could hinder service delivery and development efforts, ultimately affecting millions of Kenyans who depend on county-level services.
The financial uncertainty facing counties highlights the urgent need for a balanced approach to budgeting that protects devolution without compromising Kenya’s overall fiscal health.
As Parliament wrestles with these issues, it remains to be seen whether they can reach a compromise that secures stable funding for counties and upholds the principles of devolution that Kenyans have come to value.
