Governors say counties will be crippled if Ksh.450B sharable revenue is not allocated

While appearing before the Senate Finance Committee, the council led by Chairperson Anne Waiguru said counties are barely surviving due to a huge wage bill and pending bills. 

According to the council, the wage bill burden is going to increase even further with the proposed changes in taxation. 

The governors say the new Housing Levy deductions will further increase Counties expenditure by a minimum of approximately Ksh.4 billion, while the new National Social Security Fund (NSSF) will cost the Counties an additional Ksh.3B approximately.

Further, the county bosses say the requirement of the law on the new Social Health Insurance Fund (SHIF) contributions that require counties to pay for indigents and yet their numbers are yet to be determined will further bloat their wage bill. 

The Governors say the cost of implementing the doctors CBA upon payment of arrears is estimated at Ksh.5.8 billion and needs to be factored which also needs to be factored in while considering the sharable revenue. 

"I want to look doctors straight in the eye and tell them that if we don't get this money, we will be lying to them even if we signed a new CBA, we won't be able to pay them as counties,"said Governor Muthomi Njuki who is also the chairperson of the Health committee at the COG. 

While appealing to the Senate to stand up and fight for devolution, Waiguru said despite functions being devolved, the money is still retained by the ministries. 

"I think what this boils down to is do we believe in devolution or not, do we need to have counties or not. We are not asking for money to spend on unnecessary things, we are asking for money to spend on basic stuff," Waiguru said. 

"When we look at the ministries you will find a lot of money that is set aside for functions that are devolved, if you go there we can get money that can go to counties," she added. 

COG vice chair Ahmed Abdullahi wondered why the counties are only being added Ksh.6 billion from what they were allocated in the 2020-2024 financial year. 

"How do we give counties Ksh.6B out of the increase of Ksh.376B, knowing the functions that have been devolved?  that is only 1.5%." 

The chair of the committee and Mandera Senator Ali Roba sympathized with the counties although he also warned of the ground. 

"I see you governors making feel good political statements, you accept county aggregation parks where you cost share, you even accept to pay a certain percentage on community health workers, when you know the reality can't support that, I urge you restraint yourself from making feel good political statements," he said. 

The committee however committed to support counties to get money than the proposed Ksh.391 billion in the budget policy statement. 

"Whereas the difference of what is in the bill and what you have proposed is huge, I think it's rational, the Senate will do its bit, I can't guarantee you that you will get what you are asking for but we will fight to give you more money,” he said. 

The standoff is likely to cause the National Assembly and the Senate to head for negotiation on the Division of revenue bill as both are proposing different figures.