Kenya: Impasse Persists On Revenue Sharing As MPs Demand Withdrawal of Road Maintenance Fund Case

Nairobi — The Politics surrounding the control of the Sh10.5 billion Road Maintenance Levy Fund between MPs and Governors has continued to stall talks to iron out the stalemate over the equitable revenue share to the devolved units.

The issue pending in the High Court following a suit filed by the Council of Governors has caused a deadlock in the 18-member mediation committee, which is set to reach an agreement on equitable share for devolved units.

Members of the National Assembly in the committee co-chaired Kiharu MP Ndindi Nyoro and Mandera Senator are demanding the Council of Governors to withdraw the case to unlock the deadlock over the funds.

“Senate should have a conversation with Council of Governors and deal with the elephant in the room which is the actual figures on the revenue share to counties and the court issue over the Roads Maintenance Levy,” said Funyula MP Wilberforce Oundo.

Justice Lawrence Mugambi froze the funds until the county bosses’ case is heard and determined and further suspended the National Assembly’s decision in August not to recognize governors as beneficiaries of the funds managed by the Kenya Roads Board.

The Committee Co-chair Ali Roba dismissed calls for talks between senators and the council of governors over the roads maintenance levy issue with a view to withdraw the case seeking to have governors wield influence on the roads kitty.

“It’s not foreseeable that the Senators will go and have a discussion with Governor over the Roads Maintenance Levy Fund. The governors and senators are not as darling as you think. We are striving to find a reasonable reason as mediation committee and as senators we must protect devolution,” Roba said.

County Bosses have challenged the constitutionality of the National Assembly to deny the county governments funds collected from taxes for the purpose of maintaining roads yet county roads fall under their jurisdiction.

MP Nyoro urged the mediation committee to consider the technicalities on legal issues that will emerge dependent on the final consensus once an agreement is reached on revenue share to counties.

“We must not run from the underlying issues because that will be a dereliction of duty. We must not take the easy route, we must take the hard route which is unlocking monies and it requires a political and technical solutions,” Nyoro averred.

Rarieda MP Otiende Amollo expressed that impeding the Presidential veto on County Allocation Revenue Allocation (CARA) that recommended the equitable share at Sh 380 Billion will be an herculean task as previous attempst have failed since 2010.

“We have to agree in order to persuade the house to agree with us. Otherwise it will be a dereliction of duty. The way we implement the presidential veto over bills is that we give him power to make laws which was not contemplated in the constitution,” remarked Amollo.

Sign up for free AllAfrica Newsletters

Get the latest in African news delivered straight to your inbox

Success!

Almost finished…

We need to confirm your email address.

To complete the process, please follow the instructions in the email we just sent you.

Error!

There was a problem processing your submission. Please try again later.

Migori Senator Eddy Oketch argued it was unfortunate that devolved units were bearing the burden of Sh 20 Billion budget cut following the withdrawal of the Finance Act 2024 despite having no access to borrowing mechanisms compared to National Government.

“It’s is a bad faith to take the Sh 20 Billion from counties by slashing the equitable share from Sh 400 Billion and say that the National Government is getting a Sh 346 Billion cut without looking at the impact. Counties have no opportunity to borrow like the government who can borrow loans,” Oketch argued.

Kitui Central MP Makali Mulu expressed that the withdrawal of Finance Act 2024 portended unprecedented times which the constitution didn’t envisage and hence both levels of government should be prepared to bear the shortfall.

“Should the shortfall be taken by the national government or the counties given that the finance bill was withdrawn. If we sort out the issue, we will be done here,” Mulu noted.

The mediation team will reconvene next week in an effort to unlock the impasse, with devolved units set to face financial strain as the deadlock persists.

ADVERTISEMENT