The Council of Governors (CoG) led by the Chair H.E Anne Waiguru participated in the 20th Ordinary session of the Intergovernmental Budget and Economic Council (IBEC) summit on 5th June 2023 in Karen.
Addressing the press after chairing the meeting, Deputy President H.E Hon. Rigathi Gachagua alongside Excellency Governors, National Treasury CS and representatives of state agencies expressed the commitment of the National Government to clear all funds owed to Counties before the end of the 2022/23 FY.
“We are alive to the prevailing economic situation in the country and the financial crisis being experienced in the Counties. In view of this, we commit to work towards disbursing Counties’ equitable share for the month of April by the end of the week and May allocations by 19th June 2023. We will do everything possible to raise money for the month of June and if it is not possible, we ask Governors to bear with us,” noted H.E Rigathi Gachagua.
As resolved during the summit, the National Treasury disbursed all the outstanding balances for the FY 2022/23 equitable share allocation. This ended the impasse between the two levels of government over the timely release of funds which saw Governors threaten to shut down operations in their Counties. To this end, the National Treasury disbursed April 2023 allocations on 8th June, May allocations on 19th June and June allocations on 23rdJune 2023.
On matters pending bills, Governors were given two weeks to interrogate and ascertain the validity of the pending bills before paying them. An additional week was designated for engagement and negotiation between the Counties and the Controller (COB) to reach a mutual agreement on pertinent issues that might arise during validation.
During the session, Governors also raised alarm over the uncoordinated approach undertaken in licensing and exploitation of minerals in the Counties, a situation that has not only had detrimental impacts on the environment but also surrounding communities.
“There is need to streamline the mining sector and ensure mining activities are carried out is a safe and ec0-friendly manner. The royalties accrued from mining activities pose immense economic benefits for communities in these areas and could translate to increased revenue collection for both Counties and National Government,” said the Council Chair H.E Anne Waiguru.
“We intend to convene a stakeholder engagement forum to address challenges plaguing the mining sector and devise strategies to maximize its untapped potential,” added the mining CS Hon. Salim Mvurya.
The meeting also deliberated on other critical issues affecting County Governments including: the Equalization Fund Appropriation Bill 2023; the status of unbundling, costing and transfer of devolved functions and valuation of assets and liabilities and; matters concerning the agriculture sector, including privatization of sugar companies.
It was resolved that: the Equalization Fund Board and the Commission on Revenue Allocation to review and undertake a holistic approach on the manner in which marginalised counties were identified to ensure fairness and equity in allocation of equalization funds; a special IBEC meeting to be convened to consider the report on the status of unbundling, costing and transfer of devolved functions and valuation of assets and; there is need to explore leasing out of government-owned sugar factories as opposed to privatization following consultations with the respective Counties.