Intergovernmental Budget and Economic Committee
Created: 21 February 2017
Devolution came in a new way of doing business and with it new institutions, systems and running government operations. One key impact of devolution is the openness, transparency and consultation amongst key stakeholders.Over the last four years, the Deputy President H.E. William Ruto has brought together key stakeholders from both levels of government to continuously engage on Public Finance Management matters in order to provide and create a firm foundation upon which devolution will thrive.
During the last IBEC meeting for the pioneer governors held at the DP’s residence in Karen, the Deputy President thanked all members for having continuously and meticulously executed their mandate despite the challenges and hurdles. He noted that the many successes all over the
country have not come easy and that it has taken the efforts and commitment of all players to get to where the country is at the moment. He lauded all members for their participation in the exercise of setting up institutions that kick started devolution. The meeting was attended by H.E Wycliffe Oparanya Governor Kakamega and Chair of the Finance Committee, H.E John Muruttu Governor Taita Taveta and H.E Mohammed Guleid, Isiolo Deputy Governor among other players from both national and county governments.
IBEC is established as per Section 187 of the Public Finance Management Act (2012) as a forum for consultation and cooperation between the National and County Governments on matters relating to budgeting, the economic and financial management of both levels of government. On the table were discussions on the alignment of PFM Act to provide a better sounding for moving devolution forward and the privatization of sugar mills arising from the Kshs.40Billion waiver of debts accrued by the sugar companies. The meeting also sort to finalize pension issues in order to protect pensions of hundreds of workers in the county governments.
Progressively, the meeting was been able to address issues touching on county assets, liabilities and public finance. Resolutions from the meeting include;
• Governors will be incorporated in the steering and technical committee to improve the levels of accountability in the IFMIS system
• A review of the legal notice on the formation of county assets and liabilities committees to fastrack the identification, verification and validation of the assets and liabilities of the defunct local authorities.
• The National Treasury will avail Kshs.2billion as conditional grant to improve vocational training institutions
• Fuel levy will be increased from the current 15% to 25% so enable counties are now able to manage matters of roads within their jurisdiction.