Ruto Headache as Governors Corner Him With New Health Deductions

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Ruto Headache as Governors Corner Him With New Health Deductions

The Council of Governors (CoG) has dismissed the suggestions put forward by the Kenya Kwanza government regarding a revenue-sharing plan between the central and county administrations.

In a statement issued on Tuesday, February 6, the council highlighted that the proposed budget allocation from the National Treasury and the Commission on Revenue Allocation (CRA) does not adequately cater to the needs of the counties.

The council insists on including the new Social Health Insurance Fund (SHIF), National Social Security Fund (NSSF), and the halted housing levy in the revised formula, arguing that these should be treated similarly to deductions for any other employer.

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Over the past few weeks, CoG has been in discussions with representatives from the National Treasury and the Commission for Revenue Allocation (CRA) through a task force aimed at finding a resolution.

“We note with concern that after lengthy discussions and analysis of the recommendations by the task team maintain divergent positions on their proposed figures for sharable revenue,” the council through its chairperson Anne Waiguru stated.

Under the new directives, the government will implement deductions of 2.75 percent for the Social Health Insurance Fund (SHIF) program and 1.5 percent of gross pay for housing levy deductions, with the employer matching these contributions. However, the latter is subject to a pending court case.

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The Council of Governors proposed an allocation of Ksh41 billion more than the Treasury’s proposal of Ksh398.14 billion, while the Commission on Revenue Allocation (CRA) proposed Ksh391 billion.

“We advocate for the adoption of our proposal of Ksh450 billion to be allocated to counties,” stated the communique by CoG.

In defense of their budget proposal, CoG argued that allocating funds for annual salary increment costs for county employees was essential, as well as adjusting for revenue growth accordingly.

CoG also highlighted the necessity of cushioning county governments from the escalating costs of inflation across various devolved sectors, as well as the increasing expenses related to operations and maintenance.

“We therefore call upon the National Government to reconsider its position in view of the aforementioned budgetary items.

“This will allow Counties to execute their mandate and ensure efficient service delivery on their assigned functions,” Waiguru who doubles as Kirinyaga Governor emphasised.

In Other News: High Court Declines DPP’s Bid To Reopen Former Nairobi Governor Mike Sonko Sonko’s Graft Case

Ruto Headache as Governors Corner Him With New Health Deductions

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