The National Treasury wants Parliament recalled to approve monies to counties to ease a cash crisis in the devolved units caused by the stalemate over the revenue sharing formula.

Treasury Cabinet Secretary Ukur Yatani said yesterday he would soon be writing to the Speaker of the National Assembly to reconvene the House to pass the Vote on Account which allows the Treasury to release 50 per cent of the allocations to the counties.

“We have decided that if the stalemate at the Senate over the revenue allocation to counties is not solved this week, we will have no option but to ask Parliament to allow us to release Sh158 billion to counties which translates to half of the Sh316 billion shareable revenue,” Yatani told the People Daily.

Yatani had earlier said the Treasury will refer to a Supreme Court decision that allowed them to disburse 50 per cent of the allocation should there be a standoff in the Senate. “In the interim, we are proposing that counties be allowed to access 50 per cent of Sh316 billion as the senate resolve the stalemate,” Yatani said.

Advisory opinion

There is no law that allows the Treasury to release money to the counties and therefore Yatani must seek the National Assembly’s approval to release the money on the vote of account, which allows the withdrawal of cash for emergencies.

Attorney General Paul Kariuki Kihara has ruled out the possibility of county governments receiving at least 50 per cent of the allocation due to them in the 2019/20 financial year, citing lack of enabling legislation.

In an advisory opinion, Kihara said last year, that releasing the money would violate the constitution and the public finance management act.

“What is clear from the foregoing provisions of the Constitution is that there can be no withdrawal from the Consolidated Fund without the authorization of Parliament,” he said.

Kihara wrote; “In our considered opinion, therefore, there is no legal basis under the current legal architecture, upon which the National Treasury can administratively advance funds to the county governments.”

Agreeable solution 

He, however, offered a series of options to avert a financial crisis in the devolved units, following the stalemate at the senate over the Revenue sharing formula.

The Government’s Principal Legal adviser said Parliament may register a consent at the Supreme Court, for the release of Sh158 billion to counties, by the National Treasury from the Consolidated Fund.

Senators are nearing consensus in the revenue sharing to counties dispute after a unanimous deal to support the amendment moved by Meru Senator Mithika Linturi.

Those we talked to said the committee of 12 members picked to look for an agreeable solution to the matter will meet this afternoon to iron out the remaining issues before it settles on a position.

Kakamega Senator Cleophas Malala said he expects the committee to come up with a solution after the government side agreed to cede some of the areas it advocated.

“The Majority Leader is going to table some amendments, which will further improve Linturi’s amendment, which seeks to push for a win-win situation,” said Malala.

He said that the senators have agreed to support a formula which will see counties that will win do so with a small margin and those losing have their allocations reduced by equally small figures.

Disputed formula

In the Linturi proposal, 19 counties will lose Sh1.8 billion down from Sh17 billion contained in the disputed formula proposed by the House Finance committee.

Losers in the Linturi proposal are Mandera (Sh245.2 million), Kwale (177.9 million), Wajir (Sh175.6 million), Marsabit (Sh156.9 million), Kilifi (Sh153.4) and Mombasa (Sh135.1million).

Some of the top gainers are Kiambu (Sh160.2 million), Nandi (Sh149.2 million), Nakuru (Sh149.0 million), Uasin Gishu (Sh142.5 million) and Nairobi (Sh120.5 million).

“I am optimistic that we are going to find a solution this time round. Members are committed to settling the matter,” said Malala.

Linturi’s amendment, which proposes a reduction to the baseline (equal share) from Sh316.5 billion as proposed by Sakaja to Sh270 billion, has already been approved.

The Merru senator suggests that other parameters of sharing revenue should apply to the difference of Sh46.5 billion.

Elgeyo Marakwet Senator Kipchumba Murkomen, said that the 12-member committee has been able to hold talks with the National Treasury, Commission on Revenue Allocation and the sponsors of several amendments.

But Kang’ata said the Senate shall not be compromised in changing its stand on the Revenue Sharing Bill.

Kang’ata claims a number of governors whose counties are going to lose funds if the bill is implemented are the ones fighting it.

“These county bosses are fighting so hard because they want to continue getting a lot of money despite having a lesser population,” claimed Kang’ata.