Governors across Kenya have secured a major victory as the Senate approved a new expenditure ceiling allowing county executives to spend an additional Sh7.93 billion on recurrent expenses. This decision comes amidst growing concerns from Members of County Assemblies (MCAs), who now face reduced budgets for their recurrent expenses.
Increased Spending for Governors
The revised expenditure ceiling permits county executives to allocate up to Sh33.75 billion on recurrent expenses for the current financial year, up from Sh25.82 billion last year. This increase provides governors with greater flexibility to manage and execute their administrative and development projects more effectively. Notably, counties like Meru, Kitui, Nakuru, Nairobi, and Murang’a have been granted substantial headroom in spending. For example, Meru’s budget has been boosted from Sh802.47 million to Sh1.04 billion, Kitui from Sh787.23 million to Sh1.03 billion, Nakuru from Sh703.77 million to Sh949.69 million, and Nairobi from Sh640.18 million to Sh924.64 million. This trend is repeated across other counties, reflecting a deliberate shift to empower local executives in handling recurrent expenses crucial for service delivery.
Reduction in County Assemblies’ Budgets
In contrast, the senators have dealt a significant blow to the MCAs by cutting their recurrent expenditure ceiling by Sh4.24 billion. The total budget for county assemblies now stands at Sh36.36 billion, down from Sh40.61 billion last year. Nairobi, Kiambu, Wajir, and Turkana assemblies have been hit hardest by these reductions, with Nairobi’s budget slashed by Sh327.4 million, Kiambu by Sh229.6 million, Wajir by Sh208.4 million, and Turkana by Sh196 million. These cuts are seen as an attempt to curb the financial excesses of the county assemblies and encourage more prudent use of resources. However, they have sparked significant discontent among the MCAs, with concerns that the reduced budgets could hamper their ability to perform their constitutional roles effectively.
Legal and Regulatory Implications
The changes to the expenditure ceilings are anchored in the County Allocation of Revenue Bill, 2024, which was passed by the Senate. According to Section 107(2)(a) of the Public Finance Management Act, the recurrent expenditure of county governments should not exceed the county’s total revenue. This includes all operational costs excluding wages and benefits, which are capped at 35 percent of the total revenue. For county assemblies, the expenditure should not surpass seven percent of the county’s total revenue or twice the personal emoluments, whichever is lower. The adjustments to the expenditure ceilings reflect a careful balance between ensuring effective governance and controlling public spending.
Impact and Concerns
The revised ceilings have sparked a wave of disquiet among MCAs, who argue that the cuts will significantly disrupt their ability to perform their constitutional mandate. Philemon Sabulei, the Chairman of the County Assemblies Forum, emphasized the adverse impact of these reductions, saying they will undermine the role of MCAs in devolution and governance. The cuts could impede oversight functions, limit access to resources necessary for legislative processes, and ultimately affect the quality of service delivery at the county level.
As this development unfolds, stakeholders are calling for a re-evaluation of these adjustments to ensure that the county assemblies are adequately resourced to meet their constitutional responsibilities. The debate highlights the ongoing tension between the need for fiscal discipline and the practicalities of delivering services at the grassroots level in Kenya. The outcome of this fiscal reallocation will undoubtedly have significant implications for the future of devolution in the country.
