Thursday, June 27, 2013

Nairobi gets the lion’s share of county cash

By BERNARD NAMUNANE bnamunane@ke.nationmedia.com AND LUCAS BARASA lbarassa@ke.nationmedia.com
Posted  Wednesday, June 26  2013 at  23:30
Nairobi emerged as the biggest beneficiary when this year’s Sh210 billion allocation for counties was shared out on Wednesday. The city got Sh9.9 billion while Kiambu got Sh6.26 billion, just slightly less than Nakuru, which got Sh6.9 billion.
Nationally, Turkana had the second highest allocation at Sh7.9 billion while Lamu, the smallest county, had the lowest allocation at Sh1.6 billion.
The part payments by the National Treasury and the Commission for Revenue Allocation (CRA) sparked protests by governors even as the two agencies defended the figures and asked county bosses to start working with what they had.
Satisfied demands
The drastic action by MPs to reduce Senate proposals by Sh47 billion came into focus with CRA boss Micah Cheserem saying had the counties got Sh258 billion, they would have satisfied the demands of each devolved unit.
“We have limited resources as a nation. If we could have got Sh258 billion, everybody could be satisfied. Lets work together and have supplementary budget in the next three months,” he said. “Even with Sh210 billion, if used wisely, it will change the lives of Kenyans forever.”
Council of Governors chairman Isaac Ruto and Kiambu governor William Kabogo criticised the allocation, saying,18 counties would lack development funds.
Mr Cheserem said of the Sh210 billion, Sh89.9 billion would go to recurrent expenditure while Sh102 billion would finance various development projects. Another Sh3.4 billion was set aside for Level 5 hospitals.
He told governors to stop lavish spending and focus on core functions of health, agriculture and transport.
He queried some counties’ allocation of Sh800 million to county assemblies and county executives, adding, those counties’ hospitals would shut down for lack of funding.
“The money which is allocated to you comes from taxes by national government and county governments. It is meant to serve the people,” he said.
Marginalised area
Nairobi County got the highest amount — Sh9.9 billion — of which Sh6.3 billion is for recurrent expenditure.
Turkana was second with Sh7.9 billion with at least Sh4 billion to finance development projects in the marginalised area.
Kakamega County was allocated Sh7.35 billion, Nakuru Sh6.9 billion, Mandera Sh6.7 billion, Kiambu Sh6.26 billion, Bungoma Sh5.94 billion, Kitui Sh5.93 billion, Kisii Sh5.824 billion, Kilifi Sh5.82 billion, Homa Bay Sh5.72 billion, Wajir Sh5.6 billion, Meru Sh5.5 billion, Machakos Sh5.47 billion and Kisumu Sh4.86 billion.
A total of Sh4.76 billion went to Migori County, Makueni Sh4.72 billion; Garissa Sh4.69 billion; Murang’a Sh4.32 billion; Busia Sh4.24 billion; Narok Sh4.14 billion; Bomet Sh4.08 billion; Nyeri Sh4.07 billion; Marsabit Sh4.06 billion; and Uasin Gishu Sh4.06 billion.
Siaya County received Sh3.97 billion; Trans Nzoia Sh3.92 billion, Nandi Sh3.88 billion; Baringo Sh3.63 billion; and West Pokot Sh3.59 billion.
Kajiado got Sh3.511 billion; Embu Sh3.36 billion; Nyandarua Sh3.43 billion; Nyamira Sh3.31 billion; Kericho Sh3.24 billion; Elgeyo Marakwet Sh3.13 billion; Tana River Sh3.11 billion while Vihiga was allocated Sh3.02 billion.
Other allocations were Kirinyaga Sh2.82 billion; Samburu Sh2.8 billion; Laikipia Sh2.75 billion; Taita Taveta Sh2.62 billion; Tharaka Nithi Sh2.42 billion; and Isiolo Sh2.42 billion.
Lamu received the lowest allocation of Sh1.6 billion.
On Wednesday, Mr Cheserem barred county governments from external borrowing until the Loans and Grants Council is set up. The council will evaluate what county governments seek to borrow and set caps.
“The formation of the council is part of the Jubilee manifesto. If both the national and county governments borrow as they wish, it could lead to a huge public debt,” Mr Cheserem warned.
Mandera governor Ali Roba regretted that a huge amount of the money would be used to pay salaries and asked to be allowed to retrench excess staff inherited from local authorities and the national government.
Mr Kabogo said: “Some of the counties have been given money just to become national paymasters. The budgets we have used are for departments in counties that already exist. They are not new ones neither are we getting new money,” he said.
Mr Isaac Ruto regretted that despite the national government retaining Sh1.4 trillion of the Sh1.6 trillion Budget, it had given 60 per cent of its functions to counties.
“In agriculture, the national government has only remained with policy development. After creating counties, the national government is still the same. It should downsize to 40 per cent but it has instead transferred staff to counties and left for us to pay them,” he said.

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