Governors, Treasury strike deal on cash for counties

 

The Council of Governors (CoG), the National Treasury and the Commission for Revenue Allocation (CRA) will jointly table a common position on the equitable share of revenue for counties on Wednesday, Finance minister Ukur Yatani has said.

After months of deliberations, Mr Yatani said on Tuesday that they have “ironed out all the differences and we have agreed on a position,” adding that CRA was involved.

“We are now looking forward to going to IBEC with one position unlike in the past where we go and speak in tongues and leave there with a lot of challenges,” the Treasury Cabinet Secretary said during a press briefing in his office.

The Intergovernmental Budget and Economic Council (IBEC) is scheduled to meet on Wednesday.

In the past, differences over equitable share have fueled turf wars between the Senate and Treasury forcing governors to threaten service shutdowns as the impasse blocked the release of funds to counties.

“Having consulted with all the stakeholders and having agreed on a position, we do not expect any resistance or divergence in opinion because we are going to IBEC with one position,” Mr Yatani said.

While the CS did not disclose the amount agreed on, CoG’s chairman for the Finance, Planning and Economic Affairs committee Ndiritu Muriithi (Laikipia Governor) had earlier indicated that counties were pushing for Sh370 billion.

 “This year we want to have one unified position that moves all of us forward and that’s what we are trying to achieve here today. We have had many discussions and negotiations since last year for equitable share to be at Sh370 billion and that’s what we will be aiming for,” Mr Muriithi had said.

He termed the engagements with Treasury and CRA as useful and that they ended well.