The Council of Governors (CoG) has escalated its dispute with the national government over the ongoing construction of affordable housing projects and market centers, demanding that these devolved functions be handed over to county governments.
The CoG is now calling on the Controller of Budget (CoB) to block the national government from implementing the multi-billion-shilling projects, arguing that counties should have full control over these developments.
This stance was reinforced during a two-day retreat of the Executive and Liaison, Management, and Business Committee held at Enashipai Spa in Naivasha.
Speaking to the press, Committee Chair and Nyeri Governor Mutahi Kahiga emphasized that affordable housing and market construction fall under county jurisdiction.
“The Controller of Budget recently stopped counties from issuing bursaries, citing it as a function of the national government. The same principle should apply to housing and markets, which are devolved functions,” said Kahiga, flanked by fellow governors.
The CoG also raised concerns over the lack of a pension and medical scheme for governors, stating that unlike other senior state officials, county chiefs lack financial security after leaving office.
“It’s only governors and MCAs who do not have a pension scheme. We have initiated a process to establish one, along with a comprehensive medical cover for governors,” he added.
On revenue allocation, the CoG rejected the Commission on Revenue Allocation’s (CRA) proposed new formula, warning that it would disadvantage 31 counties.
“We are asking the national government to reinstate the Ksh 400.1 billion equitable share for counties, considering the increase in the national budget,” said Kahiga.
Regarding the Cabinet’s recent decision to merge 42 state corporations and scrap six, governors insisted that the assets and funds of the affected entities should be transferred to counties.
“The Cabinet must implement its decision in a manner that ensures all devolved functions, along with their resources, are transferred to counties,” he stated.
Additionally, governors resolved to stop contributions to Tier II under the NSSF Act, asserting that counties would enact their own legislation to manage urban financing.
To ensure proper oversight of devolved functions, the CoG emphasized that national ministries undertaking county functions must sign Intergovernmental Participation Agreements (IPA) as required by law.
“Going forward, the Controller of Budget should immediately stop approving any national government spending on county functions unless there is a legally binding IPA,” Kahiga concluded.
