Laikipia Governor Ndiritu Murrithi [Photo: Kenya News Agency]
The Council of Governors has called for an increase of the county equitable share.
According to a statement to the revenue allocation commission, the council’s finance and economic affairs committee chairperson, governor Ndiritu Muriithi said, the amount should be increased to 751.45 Billion shillings.
“In the wake of the COVID-19 Pandemic which slowed down the economic growth in the Country, County Governments have remained to be the key drivers of economic recovery,” said Muriithi.
The governors further called on the petroleum and mining of ministry as well as the parliament to expedite the enactment of a free mark to guide the sharing of revenue from natural resources.
The county bosses say this will enable the treasury to disburse the same to the beneficiary counties for the benefit of the local communities.
They noted that the Constitution of Kenya Amendment Bill, 2020 recommends that counties be allocated not less than 35% of all the revenue collected by the National Govt.
The CoG notes that while counties were ready to review their budgets to accommodate resultant budget cuts as a result of CRA’s recommendation, the national debt, and the 2022 general election should not be used to stifle counties.
“In line with the stipulated reasons given by the Commission for the recommendation, Counties are amenable to restructure their expenditures in order to stimulate economic growth,” said Governor Muriithi.
This comes as CRA Chairperson Jane Kiringai cites a national debt, drought, and the upcoming general elections among reasons the commission is unable to review allocation.
“The fiscal headroom to allocate either level of government more revenue is not possible. The projected revenue increase is estimated at Sh366.4 billion which is the error margin of unmet revenue target,” said Kiringai.
The commission raised an alarm over the inclination towards borrowing by the national government pointing out that the current trajectory is not sustainable.
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