Senators give Assemblies Sh2.4b more
Hillary Mageka @hillarymageka
All county Assemblies will get an additional Sh2.4 billion to clear pending bills and meet Salaries and Remuneration Commission’s (SRC) circulars on salary increments and promotion of staff.
Senators last week amended the County Allocation of Revenue Bill (CARA), 2021 prepared by the National Treasury to give the 47 county Assemblies extra cash.
“The committee recommends adjustment of county Assemblies’ recurrent expenditure ceilings by an additional Sh1.42 billion to enable counties adhere to various SRC circulars pertaining to annual salary increments and promotions of staff,” a report by the Senate Finance and Budget Committee reads.
In 2020, SRC released a circular giving guidance on promotions and annual salary increments for county governments’ staff.
Some Sh980.32 billion will be spent in paying debts that have been accumulated by 35 county Assemblies.
“The committee recommends that these fund should only be released after verification of pending bills by the Controller of Budget,” the report.
It adds: “The effect of the assignation of these funds to the 35 Assemblies, therefore has the effect of increasing their expenditure ceiling for this financial year.”
To prevent accumulation of pending bills by Assemblies, Senate also amended the Public Finance Management Act 2012 to ensure all monies appropriated for county Assemblies are transferred in full by the end of the financial year and in the event of unspent balance, it should be made available in the subsequent financial year for budgeting and settlement of any financial commitment made in the previous year.
Regarding the Senate resolution that county governments should rationalise staff establishment before June 2021, the committee recommended that the same be extended to June 2023.
Remaining amount
Kirinyaga Senator Charles Kibiru, who chairs the Senate committee on Finance, noted that the increase in the ceiling has been occasioned to enable MCAs clear their pending bills.
In total, all the county Assemblies have been allocated Sh33.25 billion out of Sh370 billion allocated to all the Executive.
Out of the Sh33.25 billion, some Sh24.24 billion or 73 per cent will go towards salaries, allowances, gratuity and pensions while Sh8.36 billion will be spent on Operations and Maintenance.
The Bill gives Nairobi, Nakuru, Turkana, Kiambu and Kilifi counties the lion’s share of the Sh370 billion allocated to all the 47 devolved units.
Nairobi gets Sh19.24 billion, up from Sh15.91 billion this year; Nakuru receives Sh13.02 billion compared to Sh10.47 billion; Turkana will get Sh12.60 million against the Sh10.53 it got in 2020/21.
Kiambu and Turkana will get Sh11.71 billion and Sh11.64 billion, respectively, compared to Sh9.43 billion and Sh10.44 billion they received in the current financial year.
According to the Bill, Lamu, Tharaka Nithi, Elgeyo Marakwet, Vihiga and Nyamira will get the smallest allocations, though with marginal increases compared to their current allocations.
Lamu has been allocated Sh3.10 million against Sh2.59 million it received this year; Tharaka Nithi will get Sh4.21 billion, up from Sh3.92 billion, and Elgeyo Marakwet gets Sh4.60 million, compared to Sh3.86 million this year.
Vihiga and Nyamira get Sh5.06 billion and Sh5.13 million, up from Sh4.65 billion and Sh4.81 billion, respectively,
The allocations are based on the third basis for revenue allocation passed by Parliament last year after months of a standoff in the Senate.
