COUNTIES are at risk of losing Sh50.5 billion meant for the implementation of donor-funded projects as the senators and MPs clash over a crucial Bill.
The two houses have differed over the County Governments Additional Allocation Bill, 2025, with each House originating and passing their own version of the Bill.
The clash triggered a fresh standoff that would further derail the unlocking of the billions to the counties.
The devolved units have waited for nine months for Parliament to approve the Bill to unlock the funds after governors went to court to challenge the blocking of the counties from benefitting from Sh10.5 billion from Roads Maintenance Levy Fund.
“We have removed from the Bill any mention of that RMLF until the courts have decided because of sub judice. We have put it away completely to remain with the other schedules,” Kakamega Senator Boni Khalwale said.
However, despite the two Houses agreeing to exclude RMLF from the Bill, they have still clashed on other grants and donor funds that should go to the counties.
The fresh standoff comes barely three months to the end of the financial year, a move that would further delay the unlocking of the funds.
“It is a very untidy situation and I hope this never happens again. I don’t recall ever moving a Bill for monies to counties this late,” Majority leader Aaron Cheruiyot said.
Last week, the National Assembly passed their version of the Bill, giving counties Sh25.31 billion in additional allocation — grants and loans from donors and the national government.
However, the senators have also approved their version, giving the devolved units Sh50.5 billion in the current financial.
Last week, governors threatened to shut down the counties if the county funds ‘deducted’ by the MPs were not reinstated.
“From this deduction, county governments will lose Sh38.4 billion of the additional allocations, of which Sh24 billion are conditional grants,” Council of Governors Vice-Chairperson Mutahi Kahiga said.
According to the Bill passed by the National Assembly, the MPs gave the counties Sh7.84 billion from the national government’s share of revenue in 2024-25 FY.
The lawmakers also gave the devolved units Sh116.09 million from he proceeds of court fines.
The MPs also gave the devolved units Sh17.36 billion from the proceeds of loans or grants from development partners for the 2024-25 financial year.
However, the senators gave the counties Sh8.41 billion from the national government’s share of revenue in 2024-25 FY.
The senators gave the counties Sh116.09 million from the proceeds of court and Sh42.01 billion from proceeds of loans and loans from development partners.
On Thursday, Senators took on the MPs for undermining devolution by grabbing funds meant to develop the counties
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