Why counties could get more cash

A Senate committee has gone against the National Assembly and Treasury's wishes by proposing higher allocation of revenues to counties.

The Finance Committee of the Senate on Tuesday revised the Sh283 billion proposed by MPs last week and recommended that devolved governments get Sh291 billion.

The proposals will be debated on April 28 when senators return from recess.

According to a new schedule, Nairobi should get the highest allocation of Sh20 billion, which would make the county the biggest beneficiary for the third year running.

Senator Mutahi Kagwe, who chaired Tuesday’s committee at County Hall, Nairobi said the concerns by Kenyans was how this money would be used.

“Oversight agencies should play their role and ensure this money is used as planned for,” Mr Kagwe said.

In this financial year which ends in June, Nairobi was given Sh13 billion. If the Senate proposal is adopted, it will get Sh7 billion more when the Budget is read in two months.

In the coastal region, Mombasa will get Sh6 billion, up from Sh4.8 billion. It will be followed by Kwale (Sh5.5 billion) and Tana River (Sh4.3 billion).

Taita-Taveta and Lamu will get the least amount of Sh3.6 billion and Sh2.3 billion respectively. Lamu County’s allocation is the lowest nationally.

In western Kenya, Kakamega will be the biggest beneficiary after senators proposed that it should be given Sh10 billion. Nakuru will get Sh9 billion, followed by Bungoma at Sh8.3 billion.

In the central and eastern region, Kiambu will top the list with Sh8.9 billion, Sh2.1 billion more than it got in the current financial year. It will followed by Meru (Sh7.4 billion) and Murang’a (Sh5.8 billion).

RAISED TOTAL REVENUE

The new schedule is part of the County Allocation of Revenue Bill, 2015 that will be tabled before the Senate for debate.

If it is adopted as part of the Budget proposals, Turkana County will be the second highest beneficiary with about Sh11 billion, up from the Sh9 billion it received in 2014. Kakamega will be third.

Though Lamu will get the lowest amount, it will get Sh500 million more. Isiolo and Taita-Taveta follow.

Last Thursday, senators raised the total revenue to be given to the counties by about Sh7.7 billion, most of it under the conditional allocations.

MPs had proposed Sh283.7 billion but senators said counties needed more money.

According to the proposals by the Finance Committee of the Senate, Sh259.7 billion will be equitably shared while the remaining will be given conditionally.

The amount of money that the National Treasury gives to counties has been rising over the last three years.

In 2013, they were allocated Sh210 billion. This was increased to Sh226 billion last year.

According to the guidelines for the Sh32 billion conditional allocations, Nairobi will again receive the highest amount of Sh302 million to fund free maternal care, Sh95.7 million for leasing medical equipment, Sh165 million from the Road Maintenance Fuel Levy Fund and Sh6.2 million conditional allocation and grants.

The county will also get Sh93.6 million from the County Emergency Fund if the money is allocated equally among the 47 counties.