The country is headed for a budget crisis following failure by Parliament to pass the Division of Revenue Bill, 2017.
The Commission on Revenue Allocation (CRA) has warned that there will be no money to pay salaries to both national and county government workers with only a day left before Parliament goes on recess.
“Starting July 2017, both levels of government will be left without budgets, which will result in unnecessary disruptions in service delivery,” said CRA chairperson Jane Kiringai.
CRA has now advised the two Houses to find a middle ground in order to resolve the matter amicably.
“Both Houses of Parliament need to reconsider their hard positions and have negotiated allocation to counties that lies between the National Treasury recommendations of Sh299 billion and the Senate provision of between Sh314 billion,” she said yesterday during a press conference in her office.
She added: “This will also pave way for the enactment of the County Allocation Revenue Bill, 2017.”
She explained that despite failure by both Houses to adopt the CRA recommended figure of Sh323 billion, which was done way back in June 2016, there was still room for the two Houses to strike a deal.
“The commission is concerned that Parliament has one day left to conduct business and if the stalemate remains unresolved, the country is staring at a budget crisis,” she said.
She explained that even though CRA had recommended the figure of Sh323 billion, a lot has happened occasioning the revised figures.
“The nationally raised revenues have fallen short of target, the country has experienced a severe drought necessitating provisions for relief food,” she said.
Further, Ms Kiringai pointed out that the maize shortage and the implementation of job evaluation structure proposals by SRC may have led to the revised figures.
“While the onus of passing the Bill lies with Parliament, the commission is committed to its mandate of providing objective and impartial recommendations,” she said.