John Mbadi,Treasury Cabinet Secretary has rejected calls for an extra Sh20 billion for counties. He says governors to accept the proposed Sh380 billion by the National Assembly.
Mbadi recognized the need for more funding but stressed that Kenya’s economy cannot support the Sh400 billion requested by governors and supported by senators. Healso explained that promising more money would result in unpaid bills, making the situation worse.
County leaders have also warned that a cash crisis may lead to a shutdown of operations.
Mbadi stated that the economy could not support the additional funding at the moment. He also warned that borrowing more funds would place a heavy burden on Kenyan taxpayers with debt.
The issue has divided political figures. ODM leader Raila Odinga supports the Senate’s push for Sh400 billion. He emphasized the legal requirement for counties to receive 15% of national revenue and criticized the National Assembly for weakening devolution.
Kitui Central MP Makali Mulu, part of the mediation committee, questioned where the extra funds would come from. He pointed out that approving an unaffordable amount would place more financial strain on Kenyans.
The disagreement between the National Assembly and Senate continues to highlight the financial challenges facing Kenya’s devolved units. Mbadi also says the govt is considering lowering Pay As You Earn (PAYE) over a period of two years. He clams the move will increase disposable income in Kenyans pocket.
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