Speaking during a meeting at
"The country has 48 governments which should be independent according to devolution but the national government is behaving like a big brother. It is holding a lot of money, for which which many of its functions have been devolved," Irungu said.
He said the national government failed failed to be a guarantor for Laikipia to borrow money from commercial banks to buy maize from local farmers through a warehousing receipting system last year.
Malombe said county governments cannot borrow money externally without the national government's guarantee because the law is not explicit on external borrowing.
"Clear frameworks need to be put in place on how devolved governments can access bank guarantees because sooner or later we will have the nice boys and girls of devolution among counties. The repercussion is that those who will feel that they were unfairly treated could cause chaos," he said.
Malombe urged the banking institution to push the national government to invest in the development of a framework that will facilitate easier bank guarantees for the devolved units.
Munya said the
An economist from the
"As economists we were afraid of the economic risks in that if all of you are allowed to borrow, it will be a competition that would result in a fiscal instability. That is why we decided on the two year period" said the official.
He said the
Most Popular Stories
- Chobani Counters Competition With Expanded Lineup
- What to Expect From an Amazon Smartphone
- Asia Seeks Obama's Assurance Over Spats
- Coachella's Young Audience a Marketers Paradise
- Nevada Range Showdown Draws Armed Supporters
- Auto Parts Plant Opening in Pa., Jobs on Tap
- National Energy Boom Blurs Political Battle Lines
- Putin: No Blocks to Boosting Relations With West
- Clinton Sought GOP Support for Health Plan
- NASA's Space Station Robonaut Finally Getting Legs