Gachagua: We’ll review counties benefiting from Sh13bn Equalization Fund

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The government will review the process in which the marginalized counties benefiting from equalization funds were identified, Deputy President Rigathi Gachagua has said.

Gachagua noted there have been concerns among some governors who argue there are sub-counties with similar climatic conditions but were left out.

“We have agreed that there will be a meeting to interrogate and review the criterion used to identify those counties that should be benefiting from the funds,” he said Monday after chairing an Intergovernmental Budget and Economic Council (IBEC).

An Equalization fund appropriation bill, 2023, he said, is already before Parliament.

It proposes a legal framework for the issuance of monies out of the Equalisation Fund to counties in which marginalized areas fall for the provision of crucial basic services.

A total of 34 constituencies are set to share the Sh13,893,791,644 from the Equalisation Fund secretariat being the allocation for financial years 2021-22 and 2022-23.

The Fund is established under Article 204(1) of the Constitution to facilitate the provision of basic services including water, roads, health facilities and electricity to marginalised areas to the extent necessary to bring the quality of those services in those areas to the level generally enjoyed by the rest of the nation.

The Constitution requires that Treasury pay one-half per cent of all the revenue collected by the national government each year.

It is calculated on the basis of the most recent audited accounts of revenue received, as approved by the National Assembly.

The DP at the same time stated the process of transfer of all devolved functions will be completed within the next three weeks.

Inter-Governmental Relations Technical Committee (IGRTC) is currently undertaking the process.

A recent a meeting attended by senior technical officers in the ministries, departments, agencies, parastatals and county governments, the agency said the process will not require changes to the existing law but will be transferred through a legal notice.

“In terms of resources, we are identifying facilities, assets and equipment as well as human resources that need to accompany these functions,” the agency’s chairman Kithinji Kiragu said.

He added:

“We have anticipated that there will be an omnibus legislation and these are matters we have discussed even with the senate to carter for legal changes that will be required.”

The Senate’s Devolution and Intergovernmental Committee, which is carrying out the review, has revealed that the initial audit has identified 63 pieces of legislation that are a clawback on devolution.

The panel chaired by Wajir Senator Mohamed Abass is examining all laws existing before the promulgation of the 2010 constitution to identify those that require to be amended to align with the supreme law.

“As a result of the initial audit, a total of 63 laws were found to still contain provisions that are facilitating a clawback on devolution and need to be amended, reviewed, or repealed to be aligned to the Constitution,” Abass said in a report to the Senate.   BY THE STAR   

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