Nairobi Senator Edwin Sifuna has defended the Senate's push to ring-fence specific allocations to county governments, saying the move is necessary to ensure critical public obligations are met and taxpayer funds are spent for their intended purposes.
The Senator's remarks come amid an ongoing dispute between the Senate and the Council of Governors over proposals to protect certain county allocations from being redirected to other expenditures.
Ring-fencing refers to setting aside funds for a specific purpose and legally restricting their use to that purpose only. Under such an arrangement, money allocated for programmes such as healthcare, payment of contractors, or employment of health workers cannot be diverted to other county priorities.
Speaking on the issue, Sifuna said governors have opposed efforts to ring-fence some allocations, arguing that counties should have the flexibility to determine how funds received through the equitable share are spent.
"One of the key areas of disagreement we have with governors is their opposition to ring-fencing funds allocated to counties for specific purposes," Sifuna said.
According to the Senator, citizens have raised concerns that when funds are disbursed to counties without clear safeguards, some county governments reallocate them to different projects and programmes, leaving important commitments unmet.
"As a result, contractors are often left unpaid for work and services already rendered, and critical commitments such as the absorption of Universal Health Coverage (UHC) workers into permanent and pensionable terms remain unfulfilled," he said.
Sifuna argued that ring-fencing specific allocations would help guarantee that money approved for priority programmes reaches the intended beneficiaries. He maintained that the approach would also improve accountability and reduce disputes over delayed payments and stalled commitments.
The issue of unpaid contractors has become a recurring concern in many counties, with suppliers and service providers frequently complaining of delayed settlements despite funds having been allocated for projects. The delays have often disrupted business operations and slowed the implementation of development projects.
The debate has also been fueled by the plight of thousands of Universal Health Coverage workers who were recruited under the national government's healthcare programme. Following the transfer of health functions to county governments under devolution, questions have persisted over who should bear responsibility for absorbing the workers into permanent and pensionable terms.
Healthcare unions and workers have repeatedly staged protests demanding job security and improved employment conditions, arguing that counties have been slow to implement commitments made during negotiations with the national government.
The dispute over ring-fencing comes against the backdrop of broader tensions between the Senate and governors regarding financial management and accountability in devolved units. While governors argue that conditional allocations undermine the spirit of devolution by limiting their ability to respond to local priorities, senators contend that certain funds require protection to ensure national commitments are honoured.
The Senate has in recent years intensified oversight of county governments amid concerns over pending bills, audit queries, stalled projects and the management of public resources. Legislators have argued that stronger safeguards are necessary to ensure counties deliver services effectively and account for the billions of shillings they receive annually from the national government.
Sifuna maintained that ring-fencing is not intended to weaken devolution but rather to ensure that essential obligations such as healthcare services, payment of contractors and employee welfare are not sacrificed when counties re-prioritise their budgets.
The debate is expected to feature prominently in discussions on county funding and intergovernmental relations as lawmakers and governors continue negotiations on the future management of devolved resources.
