President William Ruto faces significant opposition in his efforts to reduce spending to bridge a budget gap of Sh346 billion, as senators vow to reject cuts to county allocations.
Last week, the President announced that spending reductions would be implemented evenly between national and county governments.
This followed his refusal to approve the controversial 2024 Finance Bill, which aimed to increase national revenues by Sh346 billion.
“I have returned the County Allocation of Revenue Bill, which was expected from the rejected Finance Bill, to Parliament for appropriate reductions,” President Ruto stated.
He also directed the National Treasury to immediately submit amendments to the Revenue Allocation Act of 2024 to reflect reduced revenues after failing to sign the Finance Bill into law.
However, senators have warned the President against interfering with the Sh400.1 billion county revenue allocation as part of his cost-cutting measures.
Senate Minority Leader Ledama Olekina termed the President’s announcement as ‘foolish,’ citing Section 5 of the Revenue Allocation Act.
The Narok Senator argued that any revenue shortfall should be borne by the national government, not the counties.
“Section 5(1) of the Revenue Allocation Act clearly states that if actual revenues collected nationally in a financial year fall below expected revenues, the deficit shall be borne by the national government,” he explained.
“It’s as simple as that. We won’t allow any county funds to be touched. Anyone advising him is clueless. Let him focus on entertainment, renovation, and his secret office budgets and leave the counties alone,” Olekina added.
He blamed the President for attempting to usurp the legislative role of Parliament.
“These funds were already allocated between the national and county governments, and there’s no way we’re starting a new process,” he said.
Nairobi Senator Edwin Sifuna and Deputy Minority Leader in the Senate stated they would not support any cuts to county funds.
He noted that the Senate had approved Sh415 billion for counties, but only Sh400.1 billion was accepted.
“We will not release a single cent from the Sh400 billion. Cost-cutting measures concern the national government. Counties receive only 10% of the budget compared to the national government’s 90%. When Kenyans say stop wastage in government, they are not referring to counties but the national government. Let him focus on his office,” Sifuna emphasized.
The County Allocation of Revenue Bill, 2024 is currently in the second reading stage in the Senate.
During the debate on the bill, senators urged the national government to allocate more funds to counties.
Machakos Senator Agnes Kavindu highlighted the numerous challenges counties face in healthcare due to funding shortages.
“Counties pay doctors, buy medicine, build new hospitals here and there, among other things. Funds are insufficient. I urge the national government to allocate more funds for health and agriculture to counties, so we can work without disruptions,” Agnes said.
Nandi Senator Samson Cherargei argued that counties should receive approximately Sh500 billion to meet their devolved functions effectively.
