We can’t afford Sh5 billion special fund for cities, MPs say

March 21, 2019 - Reading Time: < 1 minute - By The Vellum Team

Parliament has rejected a proposal by the Commission on Revenue Allocation to set aside Sh5 billion to address the unique service needs for five cities in Kenya.

The conditional grant from the National Government Revenue was earmarked for the five cities that qualify as per the guidelines set in the Urban Areas and Cities Act 2011 – Nairobi, Mombasa, Kisumu, Nakuru, and Eldoret.

The CRA had also proposed the establishment of two Regional Cancer Referral Centers.

The commission had argued that the cities are centers of growth and generate economic growth and provide unique services to the residents that include sewerage systems, solid waste disposal and storm water drainage and management.  

But the Budget and Appropriations Committee of the National  Assembly turned down the proposal on the basis that there were financial constraints and it would, therefore, be difficult to allocate additional resources as conditional grants. The committee said the proposals may be considered in the next financial year.

Committee Chairman Kimani Ichung’wah said in the Financial year 2019/2020, counties will benefit from Kenya Urban Support Programme of Sh 11. 5 billion from World Bank, with exception of Nairobi and Mombasa. 

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