Former Prime Minister Raila Odinga has spoken out regarding the ongoing deadlock over the Division Revenue Bill currently under review by a mediation committee.
In a press conference on Friday, Odinga directed criticism at Members of Parliament (MPs), accusing them of being the root cause of the impasse.
Odinga claimed that MPs are engaged in a power grab by withholding funds from counties and instead directing financial resources toward the National Government Constituency Development Fund (NGCDF) and Government Affirmative Action Fund (NGAAF). He stated.
“These funds give MPs the power to conceive, implement projects, and oversee them at the same time.”
He asserted that lawmakers have entrenched this practice and are now trying to dictate the financial allocations for counties, despite clear constitutional guidelines on revenue distribution.
“Because they want to have their way with the abrogation of the constitution and getting their pound of flesh with regard to NGCDF, the Senate and the National Assembly are unable to agree on something the law is so clear on about sharing of the revenue between the National Government and the county governments,” he remarked.
The mediation process was initiated after Senators modified the Division of Revenue Bill, 2024, to propose that counties receive Sh400 billion, an increase from the Sh380 billion allocated by the National Assembly.
Raila urged MPs to adhere to their constitutional responsibilities and refrain from acting as project contractors.
“We have a situation where an MP himself is the contractor. There are several cases where the President is going to open a road and the MP is the contractor. This is shameful,” he criticized.
The 18-member Mediation Committee held its second meeting last Tuesday to address the funding dispute, co-chaired by Kiharu MP Ndindi Nyoro and Mandera Senator Ali Roba.
During the initial meeting on November 7, Nyoro explained how the National Assembly settled on Sh380 billion for the County Equitable Share for the financial year, citing austerity measures.
“Initially, we had a budget of Sh4.2 trillion, but after what happened in July, we revised the figures, leading to a downgrade in expenditure and an increase in the projected deficit,” Nyoro noted.
He stressed the National Assembly’s commitment to devolution and the necessity for the Mediation Committee to strike a balance that benefits the country as a whole.
Senator Ali Roba echoed these sentiments, emphasizing that devolution has matured and it is crucial to ensure that counties receive adequate funding for effective public service delivery.
The committee convened to explore various factors, including the rationale behind the Sh5 billion reduction in county allocations from the previous year and the expected shortfall of Sh346 billion in revenue.
They also reviewed the criteria used for revenue projections and analyzed historical revenue collection trends by the national government alongside county performance in local revenue generation.
The Division of Revenue (Amendment) Bill, 2024, which aims to adjust the revenue-sharing formula between National and County governments due to reduced revenue forecasts for FY 2024/25, was introduced following the withdrawal of the Finance Bill, 2024.
