High Court Halts Release of Marginalised Areas’ Funds

The High Court has issued an order suspending the Controller of Budget (CoB) from releasing equalisation funds meant for marginalised areas. This decision comes as a result of a dispute over the sharing criteria for the 2022-2023 allocation of these funds. Justice John Onyiego ruled in favor of four petitioners who filed an application challenging the policy that determines revenue sharing among marginalised areas.

The court has directed the CoB and Treasury to refrain from authorising the withdrawal of equalisation funds until the case is heard. The petitioners, represented by Duwane and Wethow Advocates, argue that the Commission on Revenue Allocation (CRA) board published the policy without proper public participation. They have filed a lawsuit against the Equalisation Fund board, CRA, CoB, the National Treasury, and the Attorney General.

The petitioners specifically highlight the alleged discrimination against Wajir County, particularly citing the Dadaja Bulla ward in Wajir South constituency. They express concerns that the CRA’s revenue allocation criteria for marginalised areas will be implemented without proper consideration unless the court grants the requested orders.

The funds in question are intended for basic amenities such as healthcare facilities, water, and electricity in impoverished and arid regions. According to Kenya’s constitution, at least 0.5% of the most recent audited accounts of revenue approved by the National Assembly must be allocated to the Equalisation Fund.

The petitioners argue that the allocation for Dadaja Bulla ward, at 10.1 million Kenyan shillings, is significantly lower than the allocations for other wards in Wajir South. They claim that this disparity is politically motivated. Furthermore, they argue that the ward has been treated as a single center despite having six centers within it.

The case will be mentioned again on July 26th, and until then, the release of equalisation funds has been put on hold.