July 13, 2025

Counties Risk losing 2 Billion Due to Revenue Allocation Stalemate

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By Harrison Kivisu 

Email, thecoastnewspaper@gmail.com

Agriculture cabinet secretary Andrew Karanja has called for a quick resolution of the prolonged stalemate between National Assembly and Senate mediation committee regarding conditional grants withheld by World Bank (WB). 

The CS asked the 18-member committee to reach for a solution since the country risked losing Ksh2.2 billion due to the prolonged stalemate of the two houses.

“The stalemate is affecting the program and if we don’t get a quick solution that money maybe cancelled. We don’t want to go that direction. That’s why governors are insisting that the bicameral committee should resolve the matter so that we don’t lose the money,” he said.

The secretary also reiterated the need to eradicate challenges facing the agricultural sector in order to spur its growth.

The three agriculture projects funded by WB at the cost of Ksh58.7 billion targets to revolutionise the agriculture sector in 26 out of 47 counties.  

Those targeted are – the National 

Emergency Locust Response Program (ELRP), and the Food System at a total investment of KSh58.7 billion.

The projects focus on increasing market participation and agriculture value chain development project (NAVCDP); preparedness against food insecurity, and improving the 

resilience project (FSRP) are being implemented across 46 counties against drought and outbreaks of migratory pests. 

“The project has supported value chains and opened up markets. It has also increased access to water among other achievements,” he added.

On his part, the council of governors (COG) agricultural committee chair Ken Lusaka warned counties against returning development funding saying it would set a bad precedent for future engagements.

“Returning monies meant for agriculture from development partners will set a bad precedent for us as a country,” he said.

The meeting was a joint national and county governments’ WB funded agriculture projects consultative meeting to review implementation status that was opened by agriculture CS.

The deputy COG chair Mutahi Kahiga cautioned counties against dragging their feet on implementing the WB projects.

He said the mediation committee should immediately resolve its stalemate on monies meant for counties as grants so as to avert a future funding crisis.

“We will put Kenya in a bad light if WB goes ahead and cancels the funding. The two houses in the mediation committee must show soberness in this issue,” he added.

The Nyeri governor asked the county agricultural CECMs not to drag their feet and create stumbling blocks in the process of implementing key projects.

“Any WB project is time bound and finance CECMs’ must know that we need smooth cash flow to ensure implementation of key agriculture projects.”

WB representative Ghada Elabed said Kenya was among the best performing countries in the implementation of its funded agricultural projects.

The project will also benefit other value chain actors at various levels such as extension workers, aggregators, logistics support providers and SMEs operating within the value chain.

The selection of value chains and counties was driven by a multi-dimensional criterion.

The projects support 26 value chains that are aligned to the BETA agenda as well as county priorities for agricultural transformation.

A total of 15,847 farmers have joined farmers’ producer organizations for market linkages and enterprise development.

The 26 counties are Kilifi, Taita Taveta, Kwale, Tana River, Kakamega, Busia, Kisii, Migori, Homa Bay, Nakuru, Narok, Bomet, Kericho, Nyandarua, Trans-Nzoia, Nandi, Uasin Gishu, Machakos, Makueni, Kitui, Meru, Murang’a, Kiambu, Kirinyaga, Embu and Nyeri.

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