The National Assembly has rejected the Senate Amendments to the Division of Revenue Bill, 2024. 

Chairperson of the Budget and Appropriations Committee, Hon. Ndindi Nyoro (Kiharu), tabled the Committee Report during the Special Sitting on Monday, May 13, 2024. 

While moving the Motion, Hon. Nyoro called on the House to reject the amendments proposed by the Senate in totality. In the amendments, the Senate proposed to have the County Governments equitable share increased by Kshs.24.84 billion to Kshs.415.95 billion, for FY 2024/25.

  “I want to make it clear that as the National Assembly and the Budget and Appropriations Committee, we fully support devolution, but we are also operating on a fixed envelope. I request this House to allow us to proceed to mediation so that we can have a middle ground," Hon. Nyoro said.

 He further highlighted some of the adjustments that have happened since the Budget Policy Statement (BPS) was passed earlier this year.

  “We were working with a budget of approximately Kshs.4.1 trillion. After the passage of the BPS, we have been able to slash about Kshs.270 billion, and therefore the budget we are dealing with now is approximately Kshs.3.913 trillion. Whereas we appropriated a ceiling of Kshs.391 billion, even after we slashed the expenditure by the National Government, we still let the county governments’ allocation to persist in the current consideration," he added. 

These sentiments were echoed by the Vice Chairperson of the Committee, Hon. Mary Emaase (Teso South) while seconding the Motion. She noted that the country is operating on boundaries set by the BPS, and if the Senate were to be allocated the additional funds, some allocations in the national Government would be affected. 

Leader of the Majority Party, Hon. Kimani Ichung'wah (Kikuyu), while supporting the rejection, supported the sentiments by the Committee.

 "If we were to agree with the Senate proposals, out of the funds you are receiving in your Constituency for road maintenance and NG-CDF, the Budget and Appropriations Committee will have no choice, but to sacrifice your funds to the county governments”, Hon. Ichung'wah said.

 The Leader of the Minority Party, Hon. Opiyo Wandayi (Ugunja) however disagreed with the Committee report on rejecting the Senate amendments, urging the House to instead consider constituting a special committee to look at the whole issue of functions and their costing in the county governments.

 "I agree in totality with the Senate in their proposed amendments to the Division of Revenue Bill. The Senate is only requesting for an increase to the County allocation, but not indicating where the increase should be sourced from. It is incumbent upon us to look around in the budget of Kshs.3.9 trillion and find where that money can be sourced from and allocated to the counties”, urged Hon. Wandayi.

 The Majority Party Whip, Hon. Silvanus Osoro (South Mugirango) questioned the validity of the projects undertaken by the county governments, noting that in some counties, there is hardly much to show from devolution funds compared to what NG-CDF does.

  The Minority Party Whip, Hon. Junet Mohammed (Suna East), supported the increased allocation to the Senate, citing the need to support devolution.

 "I want to urge this House, let us not be used to kill devolution. What is going to develop this Country is devolution. If there are issues of corruption let us deal with them instead of stifling devolution”, observed Hon. Mohammed.

  In reply, the Chair Hon. Nyoro agreed with all the Members that there is a need to give counties more money adding that the Committee supports devolution, but the amount of money in consideration is limited.

 "The Budget Policy Statement added the county governments Kshs. 4 billion in conditional grants. The current consideration is actually 24 percent which is even beyond the 15 percent threshold, Hon. Speaker. If we vote to increase the allocation to Kshs.415 billion, the Budget and Appropriations Committee is indifferent and where we will target most, is where there has been an increment”, said Hon. Nyoro.

 The Speaker of the National Assembly, Rt. Hon. (Dr.) Moses Wetang’ula has consequently appointed nine Members to represent the National Assembly in the Mediation Committee. 

They include: Hon.  Ndindi Nyoro, Hon. Mary Emaase, Hon. David Ochieng’, Hon. Nyakundi Mokaya, Hon.  Samuel Atandi, Hon. Dr Makali Mulu, Hon. Ali Wario Guyo, Hon. Samuel Moroto and Hon. Naisula Lesuuda.