President Ruto set to meet governors amid crises
The impasse over equitable share revenue, intergovernmental relations, and disbursement of county funds are among hot-button issues that will top the agenda of a two-day meeting between governors and President William Ruto in Naivasha, Nakuru County.
Also to be discussed during the ninth National and County Government Coordinating Summit are constitutional affairs, devolution of functions and resources, critical bills concerning county governments, audit reports and court cases between the two levels of government.
The summit is the supreme body governing intergovernmental relations and the law provides that it meets at least twice a year. Its role, among others, is the promotion of consultation and cooperation between the two levels of government.
The meeting will be chaired by the President, deputised by the Council of Governors Chairperson Anne Waiguru. Deputy President Rigathia Gachagua is also expected to attend as are Cabinet and principal secretaries.
The equitable share has been a hot potato, with governors insisting they want it to be increased to Sh425 billion from the current Sh370 billion. The National Treasury says it can only increase the amount to Sh380 billion, while the Commission on Revenue Allocation (CRA) has recommended Sh407 billion.
A draft programme for the two-day meeting seen by Nation shows there will also be an update from a meeting between the county bosses and the president on January 7 in Nanyuki.
The meeting comes as counties continue to sag under huge debts and a backlog of payments owed to contractors and suppliers. The unsettled obligations include payments to contractors of county projects, suppliers of goods and services as well as unremitted statutory deductions such as payroll taxes, pension and medical cover contributions.
According to the 2023 Draft Budget Policy Statement (BPS) released last week, a special audit by the Auditor-General shows that, between June and December last year, county governments cleared verified pending bills worth Sh48 billion.
“Sh108.1 billion worth of pending bills were found to be ineligible for payment due to lack of documentation to support services rendered or work done,” the report states.
Worst-performing counties
The document shows that Wajir, Kwale, Nairobi and Kiambu are the worst-performing counties in clearing pending dues.
Mandera County is the only devolved unit that cleared its debt amounting to Sh195.6 million.
Through circular No. 2/2022 dated March 24, 2022, the National Treasury directed governors and county finance executives to ensure outstanding pending bills are paid to avoid disruption of operations and other financial obligations of the counties.
“The counties are to provide monthly payment plans for outstanding pending bills which aim at settling them on a first in first out basis,” the policy document states. Contractors in Taita Taveta, speaking under the auspices of the Taita Taveta Contractors and Suppliers Association, have protested the delayed payment of their pending bills amounting to over Sh1.2 billion.
In the supplementary budget, Governor Andrew Mwadime's executive had set aside Sh556 million but the assembly allegedly made recommendations to have it slashed to Sh361 million.
The chairperson of the association, Mr Jefferson Mwabili, said the traders have waited for years for their money to be paid, some from as far back as 2013.
Kenya National Chamber of Commerce and Industry county chair Andrew Mwamburi said some of their members have been auctioned by creditors for failing to service loans.
“A few years ago, one of us committed suicide because the banks were on his neck over his unserviced loans,” he said. BY DAILY NATION
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