Senate has supported the move by Central Bank and the National treasury denying county governments an opportunity to borrow long term loans locally.
The Public Accounts Committee of the senate sitting in Kisumu through its Chairman Boni Khalwale said long-term borrowing by county government can only happen with the approval of the national government.
“Even that national government should it be attempted, can only allow this after three years of the devolved system are over and this is yet to happen.
He stated that the Senate was fast-tracking a legislation that can then implement the provision in the constitution that there must be concurrence with national governmrnt.
Khalwale was flanked by committee members Senators, Kennedy Mong’are (Nyamira) Anyang’ Nyong’o (Kisumu), Kimani Wamatangi (Kiambu), Muriuki Karue (Nyandarua) and Martha Wangari (Nominated).
Wangari said even in the issue of short-term borrowing that governors cannot just walk into banks and ask for money since there is a provision for the same.
“Short term borrowing should not be more than 12 months and must be approved by the members of the county assemblies,” said Wangari.
Therefore we agreed with the national treasury and central bank of Kenya that any such move is illegal.
“We run the risk of committing these governments and wananchi to financial burden they do not understand,” said Wangari.