Thursday, August 17, 2017
   
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Council of Governors statement on the stalled division of revenue bill

New Press1. The Council of Governors takes great exception to the current impasse relating to the Division of Revenue Bill 2017. As it stands, the Bill is yet to be passed by parliament. This means the County Revenue Allocation Bill 2017 cannot be debated and passed.
2. Without a County Revenue Allocation Act 2017 County Governments cannot develop their Budgets for the 2017/2018 Financial Year.
3. This Situation will paralyse the operations of all County Governments. In turn, service delivery will be completely halted including health care services starting 1st July 2017.
4. The National Assembly has continuously disregarded proposals on County allocation from all Key institutions including the National Treasury, Senate, Council of Governors and Commission on Revenue Allocation. The National Assembly has reverted to the Division of Revenue Bill 2017 with a KES 291 Billion allocation for Counties instead of KES 314 Billion.
5. The CRA and CoG proposals of which the National Assembly has disregarded includes allocations on the negotiated allowances for Doctors, Nurses, Clinical Officers and other Health Professions amounting to KES12.3 billion. Furthermore, this has not factored in the current ongoing CBA negotiations for Nurses.
6. Further, the National Assembly figures do not factor in the Job Re-Evaluation Exercise done by the Salaries and Remuneration Commission which has huge financial implications on County Governments. Available data from the National Government’s budget indicates that National Treasury has allocated KES 84 Billion towards this exercise with no indication of how much will be allocated to Counties.
7. There is need for allocation of KES 58.8 Billion to County Governments on a ratio of 70:30 based on the fact that County Governments have the bulk of staff in Public Service.
8. We call upon Parliament to move with speed to incorporate to incorporate all the above new allocations to the Counties’ sharable revenue for the year 2017/2018 in the Division of Revenue Bill 2017. Failure to which devolution will be ground to a halt.
9. We note that the National Assembly has passed the National Government Appropriation Bill 2017 in the absence of a Division of Revenue Act and without involvement of the Senate. This is unconstitutional.
10. To remedy this serious failing, the Council of Governors is moving to Court to have the National Government Appropriation Act 2017 declared unconstitutional and nullified.

Thank you

H.E. Hon. Josphat Nanok
Chairman Council of Governors

Click here to download the statement

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