Governors will control billions of shillings, translating to 45 per cent of the national revenue, in the counties in the next financial year.
Though the county bosses have been in a spot over alleged misuse of resources, they are set to receive Sh302 billion, shared among the 47 counties and conditional grant for specific projects totally Sh43 billion.
Nairobi and Turkana will receive the highest allocation while Lamu, Isiolo and Tharaka/Nithi counties will get the least.
In the County Allocation of Revenue Bill, 2017 which was published on June 13th, Nairobi County will get more than Sh14.8 billion, followed by Turkana with Sh9.7 billion, Kakamega comes a distance third with Sh9.6 billion replacing Mandera set to get Sh9.4 billion and Kiambu Sh9.3 billion
Senators deliberated on the proposed legislation which will also factor in additional Sh11 billion deal struck by the mediation committee of both Houses of Parliament.
The Bill’s Schedule for Equitable Share has the initial Sh291 billion, approved by the National Assembly and rejected by the Senate. Lamu County will get the least share at Sh2.4 billion, followed by Tharaka/Nithi at Sh3.5 billion, Isiolo Sh3.6 billion, Elgeyo/Marakwet Sh3.5 billion and Samburu Sh3.8 billion. Compared to the current budget, while Nairobi’s figure has increased, Turkana’s allocation has dropped from Sh 11.3 billion to Sh9.7 billion.
Kakamega County funds will also drop by Sh1 billion, same as Mandera, while Kiambu has received over Sh1 billion increment.
For counties getting the least share, the increment is not significant as Lamu stands at 0.03 per cent, Tharaka/Nithi 0.01 per cent and Isiolo 0.07 per cent, while Elgeyo/Marakwet and Samburu will get a reduction on allocation by 0.06 per cent and 0.11 per cent, respectively.
Debate in Senate
In the past, Taita-Taveta County also got the least share.
“The House has passed the Bill, paving way for counties to prepare their budgets. The Bill will be transmitted to the National Assembly for concurrent,” said Senator Billow Kerrow (Mandera), who is also the Senate Finance Committee chair.
He co-chaired the mediation committee on the contested Division of Revenue Bill, 2017 alongside Mbeere MP Mutava Musyimi, which allowed the Senate Majority Leader Kithure Kindiki (Tharaka/Nithi) to publish the County Allocation of Revenue Bill, 2017.
“The allocation ration used in the 2016/2017 financial year was based on the First generation formula. The allocation ratio used in 2017/2018 was based on the Second generation formula approved by the Senate on 20th April 2016 and took into account the published census results for Garissa, Wajir and Mandera counties,” Prof Kindiki explained.
This explains the sudden shift in allocation, as has been witnessed in the past years.
“The Bill deals with the allocation of equitable share of revenue raised nationally to each county Government and provides for conditional allocations to be made to the county governments,” he stated.
“It also provides for the budget ceilings for recurrent expenditures of the county assemblies and the county executives. It sets out provisions affecting the transfer made in error or fraudulently and mandates the Cabinet Secretary to make regulations for proper implementation of the Act.”
In the conditional allocation, the 47 counties will get Sh23.3 billion total conditional grants from the national Government revenue as proposed by the National Treasury and Sh164billion from grants and loans. On the ceilings, the county assemblies’ figure has reduced from Sh29 billion in the current budgets to Sh28.8 billion, while that of the Executive has increased from Sh20.8 billion to Sh25.9 billion.
The National Assembly will have to convene for a special sitting to pass the Bill, even as Majority Leader Adan Duale (Garissa Township) expressed concern that the funds could be squandered by some governors.
The publication of the Bill and debate in the Senate now allows counties to begin preparing their budgets, which has been hampered by the deadlock on the Division of Revenue Bill, 2017.