Budget: Sh150bn to establish county governments

A total of Sh151bn was allocated in the Budget to help establish county governments in readiness for the next elections.

Finance minister Njeru Githae chose the theme of the budget statement as “Deepening Economic and Social Prosperity within a System of Devolved Government."

The minister was categorical that the national government will continue to offer services to the residents in the devolved units during the transitional period.

It will gradually transfer funds to counties to make them fully operational in three years, he said.

Mr Githae said the Treasury had run a cost of all the functions of the devolved units and arrived at the Sh148 billion figure.

He said Sh3 billion had been allocated towards other constitutional reforms which will include construction of county offices.

The amount falls short of the Cabinet recommendation which requested the Treasury to allocate Sh160 billion towards the establishment of county governments.

The Treasury, he said, had set aside a further Sh3 billion for the Equalisation Fund, which will help uplift areas that have been marginalised in the past.

The Treasury also made provisions to finance rural agriculture, jobs for the youth, small and medium enterprises, roads and energy.