Monday, July 12, 2010

Financing County Governments in the Proposed Constitution.

The question whether the proposed constitution devolves sufficient funds to the county to ensure its sustainability is a critical question in the ongoing civic debate on the constitution. It has been proposed that under the proposed structure only 15% of the National Revenue is allocated to counties. However the Article 203 (2) provides that not less than 15% of the revenue collected by the national government shall be allocated to county governments. This means that this is a basic minimum, giving room for more allocation.

The proposed  constitution advances the principle of equity as opposed to equality in the sharing of resources between the national and county government, and between county governments. Article 203 (1) provides for equitable principles which are need-oriented as opposed a system that is hostile to adjustments. For instance 203 (1) (f) and (g) include the principles of the development needs of the counties and the economic disparities within and among counties and the need to remedy such disparity. Such provisions target counties in marginalised areas like Wajir and Mandera.

Further more there are additional modes of financing the counties which include the Revenue Fund under Article 207. This arises from the power of counties governments to tax and charges under Article 209. The counties may also borrow if the national government guarantees the loan and the county assembly approves according to Article 212.

The various financing options once exploited are far from the lies politicians are spreading on the county governments.

Maneno wishes an informed day.

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