The Budget and Appropriations Committee has called for a predictable revenue-sharing framework that safeguards the timely payment of Universal Health Coverage (UHC) workers.
The issue featured during a consultative engagement between the National Assembly Committee and Commission of Revenue Authority on the draft vertical revenue-sharing recommendations for the 2027/28 financial year.
Committee Chairperson, Hon. Samuel Atandi- MP said the proposed allocations for the 2027/28 FY must be assessed against the actual cost of devolved functions, the country’s revenue outlook and the competing expenditure pressures facing both levels of government.
Speaking during the engagement Hon. Atandi emphasised the need for a transparent and evidence-based approach to determining county allocations, noting that counties must have sufficient and predictable resources to meet their service delivery obligations.
“We must also address the effectiveness and predictability of transfers to county governments. Timely and predictable disbursements are essential to enable counties to plan, meet their obligations and deliver services without accumulating arrears,” he said.
The meeting noted proposals to transition UHC workers to permanent and pensionable terms, a process that has raised questions about how their salaries should be funded and transferred to county governments.
According to the CRA, the Ministry of Health recruited 9,724 UHC personnel through the Public Service Commission in 2020 for an initial three-year period. Of these, 8,550 workers were deployed across the 47 counties, with their salaries processed by the Ministry of Health.
The Ministry of Health and the Council of Governors subsequently agreed that the workers should be transitioned to permanent and pensionable terms, with remuneration based on rates prescribed by the Salaries and Remuneration Commission (SRC).
However, incorporating their salaries into the equitable share allocated to counties would require a review of the existing formula for distributing revenue among the 47 counties.
CRA Chairperson Mary Chebukati said the Commission was seeking Parliament’s guidance on the practicality of reviewing the revenue-sharing formula before April 2027, given the lengthy consultative process involved.
The Commission proposed that UHC workers’ remuneration continue to be funded through conditional allocations to county governments until the Fourth Basis for sharing revenue among counties is reviewed.
Beyond UHC financing, Hon. Atandi called on the Commission to explain the assumptions underpinning its proposed allocations, including the treatment of inflation, county expenditure requirements and existing service delivery responsibilities.
He noted that while the national government must meet substantial debt-servicing obligations and other national commitments, county governments remain responsible for essential services, particularly health, agriculture, water and local infrastructure.
CRA Commissioner Hon. Fatuma Gedi said the early consultations were intended to resolve outstanding issues and build consensus before the formal revenue-sharing recommendations are submitted.
“One of the legacies we would like to leave is a revenue-sharing recommendation that does not end up in mediation,” she said.
The Commission plans to submit its recommendations ahead of the 2027/28 budget cycle.
