Query Treasury over cash, insists agency

By JOHN NGIRACHU jngirachu@ke.nationmedia, May 16  2013

In Summary

• Kisumu Senator Anyang’ Nyong’o said matters would become a little clearer once President Kenyatta issues the circular, which should be the first thing after the swearing in of Cabinet secretaries, on what role each ministry would play.

The Commission on Revenue Allocation wants the government to explain to the Senate why some ministries have been allocated large amounts of money yet their functions have been devolved to the counties.

CRA chairman Micah Cheserem singled out the Sh68 billion allocated to the Ministry of Devolution and Planning, yet it is not clear what its role was and what development it would be involved in.

“We need to work with the new Cabinet secretaries and ask why money is still being held at the centre. Ministries have a culture of holding back. They don’t want to let go,” he said.

Mr Cheserem was speaking at a meeting with Senate committees on Devolved Government and Finance, and Economic and Planning. The committees are scrutinising the Division of Revenue Bill passed by the National Assembly last week.

Apart from the Devolution and Planning ministry, the Treasury will also need to explain allocations to health (Sh14.9 billion), sports, culture and arts (Sh681 million), and agriculture, livestock and fisheries (Sh29 billion).

A lot of the work done by these ministries would be devolved to the counties at the end of the current financial year and the senators will be keen to have the Treasury explain these allocations.

Kisumu Senator Anyang’ Nyong’o said matters would become a little clearer once President Kenyatta issues the circular, which should be the first thing after the swearing in of Cabinet secretaries, on what role each ministry would play.

A meeting between the committees and the Treasury — possibly led by the Cabinet Secretary Henry Rotich — will likely be held next week.

The committees will receive views from the public from 9am on Monday.

Mr Cheserem also asked the Senate to push for an increase in the county allocations.

The Treasury had initially proposed to allocate Sh198 billion to the counties but increased this to Sh210 billion last week after the intervention by Deputy President William Ruto.

“It is a negotiated increase but if you as senators can negotiate for a bit more, that would be better,” said Mr Cheserem.

Mombasa Senator Hassan Omar was apprehensive of Mr Ruto’s intervention as it was likely to create the impression that the increase was an act of good will on his part.

But Mr Cheserem explained that the Deputy President stepped in because there was no committee yet in the National Assembly and thus, no way for mediation between the revenue allocation commission and the Treasury.

The relationship between the commission and the Treasury was so testy, said Mr Cheserem, that he was informed of the publication and introduction of the Division of Revenue Bill in the National Assembly by the Press.