The National Assembly and Senate mediation committee have been urged to fast-track the resolution of the deadlock over the County Governments Additional Allocation Bill, 2024, which saw counties lose Sh15.3 billion.
The Sh15.3 billion to counties slashed by the National Assembly is the bone of contention with the Senate and the Council of Governors.
Speaking in Mombasa during a joint National and County Agriculture World Bank-funded projects consultative meeting of County Executive Committee Members (CECMs), Cabinet Secretary for Agriculture and Livestock Development Dr. Andrew Karanja said counties risk losing Sh2.2 billion from the World Bank.
The CS stated that World Bank-funded projects being implemented in counties risk cancellation if the standoff is not resolved.
“The stalemate is definitely affecting the program and going forward, as it has been indicated, and if we don’t a solution quickly enough that money will be cancelled and we don’t want to go that route,” said Dr. Karanja.
He added that the mediation should be fast-tracked so counties do not lose the money.
The World Bank-funded projects, the CS stated are impactful as they enable counties to initiate projects as most counties use their funds for salaries and rely on the World Bank funds for development.
“If we don’t get those funds the services we are giving to farmers and investments will stalled. It is very important,” he said.
Counties were advised to hasten the procurement process for the timely completion of World Bank projects.
The CS said the National Agricultural Value Chain Development Project, the Emergency Locust Response Program, and the Food Systems Resilience Project projects have made progress and are rated highly in the World Bank portfolio.
He further thanked the World Bank for complementing the government in rolling out agricultural projects in the counties.
On his part, Council of Governors Agriculture, Livestock and Cooperative Chairman Kenneth Lusaka asked the mediation committee handling funds that have been withheld to hasten the process as the Agriculture sector risks losing Sh2.2 billion.
“That will affect all the programs in our counties and the whole country. I want to ask the mediation committee to move with speed to resolve the issues that are outstanding so that those funds can then be released.
Lusaka also extolled the World Bank for interventions in the counties saying without donor funding in the agriculture sector, stating, “It would be very difficult given the resources we are getting as shareable revenue and even Own Source Revenue, because most counties are just paying salaries and if we didn’t have this kind of support it would be impossible for us to realize meaningful development.”
He further called for enhanced communication between the National Government and counties before the rollout of programs like the Livestock Vaccination program, which has been marred by propaganda.
“Of course, the government means well, this is a good program that is going to improve our livestock production,” he said.
On his part, the Nyeri governor and Council of Governors Vice Chairman Mutahi Kahiga stressed the need to resolve the funding stalemate saying all funds from the World Bank are loan conditions.
“If the loans are delayed as a nation we will pay more. In the end, the World Bank may redirect the funds to other sectors. When they sit in the mediation they should get a solution and agree that the nation is bigger than the individual,” he said.
The impasse, he noted may affect the completion of some projects with less than six months’ completion date.
Kahiga appealed to the 18-member mediation committee to resolve the outstanding issues and not to prolong the process as other matters are before the court.
By Sadik Hassan and Nuru Soud
