MPs question bid to allocate Nairobi Sh27.9bn

The proposal to have the National Metropolitan Services (NMS) allocated Sh27.9 billion in the 2020/21 financial year has raised questions with a parliamentary committee summoning Treasury Cabinet Secretary Ukur Yattani over the source of the funding.

Mr Yattani in a May 14, letter to National Assembly Clerk Michael Sialai, proposed that the Sh1.77 trillion budget allocated to the national government in the next financial year be amended so that NMS draws its financing from the Presidency vote-head.

Mr Ukur’s letter also proposes to have Sh53.7 billion allocated for a post Covid-19 economic stimulus package that President Uhuru Kenyatta announced at State House on Sunday.

Out of the billions allocated to the NMS, Sh1.5 billion is for Mukuru renewal project.

AMENDMENT

However, on Monday, Kikuyu MP Kimani Ichung’wah, who chairs the Budget and Appropriations Committee (BAC) of the National Assembly, said that his committee was confused over how the Treasury wants “this to happen” without amending the Division of Revenue Act, 2020.

“The committee will hear from the CS on how he wants to have this done,” Mr Ichung’wah said. According to Mr Ichung’wah, any allocation to the NMS should come from the Sh316.5 billion allocated to the 47 county governments as per the Division of Revenue Act, 2020, which he says has not been proposed for amendment.

Out of this allocation, Nairobi County is to get the lion’s share — in excess of Sh16 billion — if the third basis formula that divides revenue among counties is adopted by the Senate. “We need him to clarify to us whether the national government wants to give NMS a conditional grant or if it’s part of the equitable share to the counties in which case it will involve amending the Division of Revenue Act,” he added.

Kitui Central MP Makali Mulu, a member of the budget committee, said that the allocation can only be a contingency fund from the national government.

EQUITABLE SHARE

“If it’s not a contingency fund, because that is the only way counties get allocations from the national government other than equitable share of revenue, then it is a double allocation,” Mr Mulu said.
He added; “I want to see how the Treasury will capture this allocation in the budget.”

The budget committee has been receiving submissions from departmental committees and has until Tuesday to table a report on the consideration of the national government estimates.
The National Assembly resumes sittings on the same day after a month’s recess. The recess was largely dedicated to budget hearings by House committees.
Last Friday was the final day for the presentation of submissions to the budget committee.

In February State House brokered a deal with Nairobi County that saw the national government take over key functions from the devolved unit.

The deed of transfer agreement signed by Nairobi county Governor Mike Sonko and Devolution Cabinet Secretary under the watchful eye of President Kenyatta saw the county’s functions of planning and management, transport, public works, health and ancillary services transferred to the national government.