Honourable Members,
I write to you with an urgent plea, recognizing that while politics often takes precedence, the reality is that Kenyans are in distress. The financial challenges we face are not solely due to the absence of campaign handouts, but because there is a significant stagnation in our economy.
Public servants, particularly those at the county level, are grappling with salary inconsistencies, failing to meet their financial obligations, and being overwhelmed by debt. Suppliers to county governments are especially hard-hit, as counties have not been able to pay them, plunging them into financial hardship.
Governments are the largest drivers of economic activity. Yet, due to the failure to enact the Finance Act 2024, the government is constrained in disbursing funds to public agencies and counties. This vacuum has brought the entire country to a standstill, financially. People are suffering.
As representatives of the people, you, Members of Parliament, hold a central role in guiding the country’s internal and external affairs. The respect you command is earned not only through your leadership but also through the support of the people who elected you. In return, it is critical that you prioritize the urgent needs of your constituents.
The absence of the Finance Act 2024 severely limits the national treasury’s ability to disburse funds. Although the government continues to collect taxes under the Finance Act 2023—encouragingly, with solid returns—the lack of legal authority to spend these funds is crippling. Once the earlier Finance Bill failed, it was crucial for Parliament to immediately rework and prioritize the Finance Bill 2024. Without the law, the government is limited to spending only a small percentage of its available funds on basic operations, leaving the country in financial gridlock.
The failure to pass the Finance Bill 2024 also delayed the County Allocation of Revenue Bill 2024. Without its approval, the national treasury is further restricted in disbursing funds to counties. While the treasury presented a new County Allocation Bill to address these changes, it still needs to be approved. Your constituents are depending on you to unlock this impasse. I humbly urge you to press the Budget Committee to resubmit the Finance Bill 2024 and expedite the process to save the country from further financial turmoil.
While the Public Finance Act 2012 does not explicitly provide an alternative mechanism for releasing funds in the absence of a County Allocation Revenue Bill, the Public Finance Management regulations allow the Controller of Budget to authorize withdrawals of up to 50% from the Consolidated Fund based on the previous year’s amount. However, this is insufficient. Many counties are defaulting not only on salaries but also on donor-supported projects that require co-funding. The situation is dire—suppliers face losses, development projects are stalling, and donor confidence is eroding.
The development sector is especially affected. While the courts, including the Supreme Court, have weighed in on the matter, the ambiguity persists. Even with the Division of Revenue Act 2024 in place, the absence of an approved County Allocation of Revenue Act for 2024 leaves a significant gap in governance and financial management.
We acknowledge the immense work you are already undertaking, and we understand that your schedules are overwhelming. However, I kindly ask that you find the time to prioritize this critical issue. You have demonstrated your commitment before through marathon sittings, extended reading of investigation reports, and reviewing international conventions and agreements. I trust that you will once again rise to the occasion for the sake of the nation and its people.
With respect and urgency, Victor Bwire
Source: capitalfm
