The national assembly has rejected a proposal by senate to increase county allocation share by 20 billion shillings.
MPs thrashed the senate’s amendments on the division of revenue bill which also sought to absolve counties from paying for the leased medical equipment spearhead by the national government.
The bill will move to mediation by both houses.
The senate wanted to free counties from the payments for the leased medical equipment by scrapping the amount allocated for the medical equipment contracts in the division of revenue bill.
The governors had managed to convince the senate that there was no value for money in the payment of the medical equipment leased by the national government on behalf of the counties.
But members of the national assembly while rejecting the senate’s amendment on the division of revenue bill, argued the equipment were crucial pillar in achievement of universal health care and already there were contractual obligations.
The Members also rejected senate’s plan to retain the county allocation share of 335billion shillings as recommended by the commission of revenue allocation and stood with treasury’s proposal of 310billion shillings.
The MPs argued the austerity measures being instilled by the treasury due to shortfall in revenue collection must cut across all levels of government during the last financial year counties received 314billion shillings.