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Division of revenue: We must be vigilant

Division of revenue: We must be vigilant
National Treasury has submitted the Supplementary Estimates for the Financial Year 2024-25 (recurrent and development) for consideration by Parliament. PHOTO/Print

There is a constant rivalry between the National and County governments over the disbursement of resources to the devolved united.

The National Treasury has always projected the attitude of a demigod holding national revenue for distribution at its whim.

Yet this was not the intention of the Constitution, which demands equitable, fair and swift release of funds to counties.

The supreme law clearly defines the distribution of resources. The idea is that these resources should be dispersed to “follow” the functions assigned to county governments by the Constitution.

The Commission on Revenue Allocation (CRA) was specifically created to address disparities in the sharing of revenue across the country to ensure equity in a manner that addresses marginalisation.

Article 216 of the Constitution outlines the principal function of the CRA as making recommendations concerning the basis for the equitable sharing of revenue raised by the national government between the two levels.

The commission is also mandated to make recommendations on other matters concerning the financing of, and financial management by, county governments, as required by the Constitution and national legislation.

It is, however, unfortunate that there has been a well-orchestrated scheme by the Executive to undermine the CRA by failing to implement its decisions.

The picture of governors “begging” for resources from the Treasury has been a constant feature in news pages. This points to either negligence of national duty or incompetence at the Treasury. The result is the kind of tokenism that governors are subjected to while seeking cash.

Yesterday, it came as a relief to counties after President William Ruto signed the Division of Revenue (Amendment) Bill, 2024, which allocates money to the devolved units.

The Division of Revenue (Amendment) Act, 2024, provides Sh387 billion as an equitable share of revenue to counties for the 2024/2025 financial year.

But governors are not without blemish. Cases of plunder of public funds by officials abound. While we welcome the President’s decision, we ask Kenyans to be vigilant in order to ensure that the allocated money is put to good use — delivering services to the public.

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