Bill shows how counties will share Sh302 billion

Nairobi will get the highest share of the billions of shillings earmarked for counties for the fourth consecutive year, according to the new County Allocation of Revenue Bill at the Senate.

The Bill tabled in the House on Tuesday details how the 47 counties will share the money and now awaits approval by both Houses of Parliament .

The Treasury has proposed that the devolved units share Sh302 billion in the next financial year beginning in June, a raise from the Sh294 billion given this budget year.

Nairobi will be given Sh14 billion, while Turkana will get Sh11 billion, Mandera Sh9.7 billion and Nakuru Sh8.8 billion.

Other top 10 recipients are Bungoma (Sh8.3 billion), Kiambu (Sh8.05 billion), Kilifi (Sh8.03 billion), Kitui (Sh7.84 billion) and Wajir (Sh7.8 billion).

Lamu, for the fourth year running, is among the counties receiving the least allocation with Sh2.2 billion. 

Others are  Isiolo (Sh3.3 billion), Tharaka-Nithi (Sh3.4 billion), Elgeyo-Marakwet (Sh3.5 billion) and Taita-Taveta (Sh3.6 billon).

The allocation formula was developed by the Commission of Revenue Allocation in 2013 and attempts by the Senate to develop a new one have floundered due to disagreements.

NEW FORMULA

A new formula is however in the works and members are still trying to find a common ground.

A Bill on the formula tabled by the Senate Finance Committee vice-chairman Peter Mositet, also proposes a special allocation of Sh4 billion to be shared by Tharaka-Nithi, Lamu, Nyandarua, Tana River and Isiolo to construct county headquarters.

“Whilst it is true that the above named counties did not inherit offices that could accommodate the county governments, there is no evidence that these counties applied the funds transferred to them by the Transition Authority in Financial Year 13/14 for the refurbishment of identified offices,” said Treasury Cabinet Secretary Henry Rotich in a memorandum attached to the Bill.

Wednesday, CRA Chairman Micah Cheserem said the commission would still push for more money to the counties, saying there were functions which had not been catered for in the latest allocation.

“The issue of contention is about revenue growth and roads. With additional roads, how come counties have not been given money for roads,” said Mr Cheserem when CRA appeared before the committee.

The Treasury’s proposed allocation is less than Sh332 billion proposed by CRA for the counties.

Mr Cheserem called for austerity measures to check on the expenditure in the national and county governments

“We would really be lying to ourselves that we cannot support the new structures of devolution without austerity measures,” he told the committee.

Meanwhile, the National Treasury has turned down a request by the CRA to allocate Sh5 billion to counties for building primary and secondary schools. Treasury Cabinet Secretary Henry Rotich said primary and secondary education was not devolved and it would be wrong to sanction the request.

CRA wanted the money for the development of school’s infrastructure, saying parents were still financing the construction although it was the responsibility of the national Government.