Students relief as State, devolved units strike deal on disbursements
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It’s a sigh of relief for thousands of needy students after the National and County Governments struck an agreement that will see governors continue to draw disbursements for the Financial Year 2024/25 bursaries.
This was agreed at yesterday during the 26th Intergovernmental Budget and Economic Council (IBEC) meeting held at Deputy President Kithure Kindiki’s official residence in Karen.
Subsequent to this agreement with regards to education support by County Governments, all counties that have established distinct Funds to expeditiously put such Funds in place, or in the alternative pursue Intergovernmental Participatory Agreements (IPAs) with the Ministry of Education.
“And for any other County Governments that have yet to establish distinct Funds, a formal engagement to be undertaken among the National Treasury, CoG, Ministry of Education and CoB to formulate a sustainable engagement framework,” a joint Communiqué from the meeting reads.
Cede education function
This has been a sticky issue which saw the governors tell off the Controller of Budget (CoB), Margaret Nyakang’o on bursaries that county governments cede the education function to the national government if they wish to continue supporting students.
“Part 1 of the Fourth Schedule under Section 16 designates universities, tertiary educational institutions, primary schools, special education, secondary schools, and special education institutions as functions of the national government,” the CoB said.
Nyakang’o, in a communication to County Executive Committee Members (CECMs) of Finance, said any requisition for withdrawal of funds to perform functions under the national government must be accompanied by intergovernmental agreement.
She further stated that for county governments to offer educational support towards national government functions, there is need to transfer the function.
However, the governors challenged the move claiming there is a political motive behind the decision as Nyakang’o had already approved their budgets which contained bursaries.
Bursary allocation
Nyeri Governor Mutahi Kahiga countered that in almost every county there is an allocation for bursary which she approved in July. “So what is this that has suddenly come up after she has approved budgets and now she requires Nyeri as a county sits with the government and signs participatory agreement to a function that has not been given to counties or national government?” he posed.
His Trans Nzoia counterpart, George Natembeya said, were it not for the bursary he could be a charcoal burner.
ODM Governors, in a statement, called on Nyakang’o to reconsider the directive and to apply equitable measures that uphold the constitutional rights and responsibilities of both levels of government.
However, now this is water under the bridge after yesterday’s agreement which also the Governors committed by signing a communiqué to support the national government to implement key projects and programmes aimed at boosting the economy through creation of jobs and catalyzing growth of critical sectors.
The governors said they will throw their weight behind all the crucial projects geared at improving Kenyan lives.
Affordable housing
Kindiki chaired the Session, which also saw the governors pledge to support seven key development areas: revitalization of agricultural value chains, affordable housing as a stimulator of manufacturing, creation of training opportunities, direct and indirect jobs and reforms in education and health.
“The 26th IBEC resolved that the county governments work with and support the National Government in delivering key joint government projects in delivering key joint government projects in the seven development priorities that have the greatest impact on the largest number of citizens,” the statement said.
The meeting also hammered a deal that will see the CoG and CoB establish a customer desk to receive and process on behalf of County Governments, any emerging issues related to the approval process for withdrawal of funds from the County Revenue Fund (CRF).
“That the National Treasury commits to disburse pending December disbursements to County Governments in the month of January 2025, and endeavour to disburse January and February allocations within the month of February 2025 and monthly thereafter,” they agreed.
Another element of the discussions was an agreement that the National Treasury reviews the budgets in line with the gazetted devolved functions to ensure that national government ministries, departments and agencies cease to hold funds for any devolved functions, and similarly fast track implementation of resolutions of the 25th Ordinary session relating to court fines, mineral royalties, library functions and construction of county headquarters.
During the meeting, all the actors in the sharing and disbursement of the county allocations agreed to work harmoniously in building consensus to avoid acrimony.
“The Council of Governors, National Treasury and the Commission of Revenue Allocation negotiate in good faith on the matter of Division of Revenue with a bid to ensure the continued support for County Governments while remaining conscious of the available resources,” the communiqué indicated.
The county governments also committed to prioritise payment of pending bills, salaries and pensions to ensure fiscal responsibility and efficiency. Further, yesterday’s IBEC meeting approved the Budget Policy Statement 2025 upon consideration of the governor’s input.