By: James Kilonzo Bwire
The 24th Ordinary Session of the Intergovernmental Budget and Economic Council (IBEC) convened national and county government leaders to address critical financial and governance issues. Chaired by the Deputy President, the session aimed to foster collaboration between the two levels of government, ensuring effective service delivery and accountability to citizens. Key discussions revolved around equitable revenue sharing, pending bills, and resource allocation for essential services, reflecting the ongoing efforts to strengthen Kenya’s devolved system.
A primary focus of the session was the equitable sharing of revenue between the national and county governments. The Council of Governors (COG) advocated for an increase in the equitable share for counties from Ksh.370 billion to Ksh.425 billion for the 2023/24 financial year. This increase is crucial for enabling counties to effectively execute their functions and address challenges impacting devolved units. The National Treasury’s allocation of Ksh.380 billion was deemed insufficient by COG leaders, prompting further negotiations to establish a more suitable revenue-sharing agreement.
The meeting also tackled the pressing issue of pending bills in counties, which have been accumulating due to factors such as low own-source revenue collection and delays in fund disbursement by the National Treasury. As of January 2023, counties faced a total outstanding balance of Ksh.75.71 billion in allocations for November 2022, December 2022, and January 2023. The discussions underscored the necessity for counties to enhance their revenue collection efforts and for the National Treasury to ensure timely disbursement of funds.
Resource allocation for essential services, including health, environment, water, and natural resources, was another critical topic. For the upcoming financial year, the health sector is set to receive Ksh.148.293 billion, marking an increase of Ksh.25.774 billion from the previous year. Similarly, the environment, water, and natural resources sector will receive Ksh.122.877 billion, an increase of Ksh.15.699 billion. These allocations reflect the government’s commitment to prioritizing essential services and improving citizens’ quality of life.
The session emphasized the importance of ongoing consultations and collaboration between national and county governments to ensure effective project implementation and sound fiscal policies. This collaborative approach aims to enhance service delivery and accountability at all levels of government. The meeting was attended by key stakeholders, including Cabinet Secretaries, Governors, Deputy Governors, and Chairpersons of Independent Commissions, highlighting the significance of united efforts in addressing governance challenges.
The discussions at the 24th IBEC Session highlighted the ongoing commitment to strengthening collaboration between the national and county governments in Kenya. Critical issues such as equitable revenue sharing, pending bills, and resource allocation for essential services were thoroughly examined. As the country continues its journey of devolution, such meetings play a vital role in ensuring effective service delivery and accountability to citizens.
The COG’s demand for an increase in the equitable share for counties underscores their dedication to ensuring that counties have adequate resources to fulfill their mandates. The ongoing negotiations between the COG, National Treasury, and CRA are crucial in establishing a fair revenue-sharing framework that supports the operational needs of devolved units.
The accumulation of pending bills in counties remains a significant concern that requires immediate attention. Addressing the factors contributing to these pending bills is essential for maintaining economic stability and ensuring the delivery of essential services to citizens. Both levels of government must work collaboratively to resolve these issues and enhance the financial health of counties.
The increase in funding for essential services, particularly in health and environmental sectors, demonstrates the government’s commitment to improving citizens’ lives. However, effective utilization of these funds is paramount to achieving the desired outcomes and ensuring that services reach those in need.
The emphasis on continuous consultations and collaboration is a critical aspect of the 24th IBEC Session. Open communication and mutual understanding between national and county governments are essential for effective project implementation and sound fiscal policies. The participation of key stakeholders in the meeting underscores the importance of this collaborative effort.
As Kenya continues its journey of devolution, the 24th Ordinary Session of the Intergovernmental Budget and Economic Council (IBEC) serves as a reminder of the need to strengthen relationships between national and county governments. The outcomes of this session will have lasting implications for the future of devolution in the country, highlighting the importance of joint efforts in ensuring effective service delivery and accountability to citizens.
In conclusion, the 24th IBEC Session was a pivotal event that underscored the ongoing efforts to enhance collaboration between national and county governments in Kenya. The discussions centered on equitable revenue sharing, pending bills, resource allocation for essential services, and the necessity of continuous consultations. Such meetings are crucial for ensuring that the principles of devolution are upheld, ultimately leading to improved service delivery and accountability for all citizens.
James Kilonzo Bwire is a Media and Communication practitioner.
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