The Commission on Revenue Allocation (CRA) has warned that there will be no money to pay salaries to both national and county government workers following a failure by Parliament to pass the Division of Revenue Bill, 2017.
With only a day left before Parliament goes on recess, CRA says that there will be a major budget crisis if the stalemate lingers on.
“The commission is concerned that Parliament has one day left to conduct business and if the stalemate remains unresolved, the country is staring at a budget crisis,” said CRA chairperson Jane Kiringai.
The impasse in passing the Division of Revenue Bill, 2017 has been occasioned by supremacy battle between the Senate and the National Assembly over county revenue allocation.
in May this year, The Division of Revenue Bill failed to sail through Parliament after members of the National Assembly refused to accept Senate’s recommendation that county revenue allocations be increased by Sh29 billion on top of the Sh321 billion proposed by the Treasury for the 2017/18 financial year.
CRA has now advised the two Houses to find a middle ground in order to resolve the matter amicably.
“Both Houses of Parliament need to reconsider their hard positions and have negotiated allocation to counties that lies between the National Treasury recommendations of Sh299 billion and the Senate provision of between Sh314 billion,” Kiringai said
The Salaries and Remuneration Commission (SRC) had in February reviewed the civil servants pay in a new structure that was to take effect from July.
Under the new structure, where jobs have been graded in 19 categories, the lowest employee (grade B1) will earn a minimum of Sh14, 442 while the highest paid civil servant in E4 will pocket a starting salary of Sh292, 765 a month up from Sh11, 553 and Sh576, 120 respectively.