Counties get Sh33bn more as law signed

President Uhuru Kenyatta signs into law the Equitable Division of Revenue Bill for 2018/2019 financial year. PHOTO | PSCU

What you need to know:

  • This is an increase of about Sh33.3 billion or 9.8 per cent of the funds that the counties received this year.

Counties will share Sh372 billion in the next financial year after President Uhuru Kenyatta Tuesday signed into law, the Division of Revenue Bill, 2018.

This is an increase of about Sh33.3 billion or 9.8 per cent of the funds that the counties received this year.

It comprises an equitable share of revenue allocation of Sh314 billion, up from Sh302 billion this year, while the conditional and additional grants — money meant for specific work per county — have increased from Sh24 billion to Sh58.7 billion.

DEVOLUTION

The Division of Revenue Act provides for the equitable sharing of revenue raised nationally between the national and county governments.

This is to be based on, among others, the functions that each level of government is responsible for as outlined in Schedule Four of the Constitution.

“The Constitution provides for the vertical (equitable) sharing of revenue raised nationally between the two levels of government,” says a statement released by State House.

The Bill was presented to the President for signing by National Assembly Speaker Justin Muturi.

Also present were Attorney-General Paul Kihara Kariuki, Solicitor-General Kennedy Ogeto and the Assistant National Assembly Clerk, Mr James Njoroge Mwangi.

TREASURY

The Commission of Revenue Allocation had recommended Sh337.2 billion, the Treasury proposed Sh314 billion, and Intergovernmental Budget Economic Council, which is chaired by the President, agreed on Sh317 billion.

The National Assembly Budget Committee tabled the Bill with a figure of Sh314 billion.

The counties will get a Sh9.4 billion grant to facilitate the leasing of medical equipment, a project that is in its fourth year of implementation. This financial year, counties received Sh6.1 billion.

This is in line with one of Jubilee’s ‘Big Four’ agenda, provision of universal health care, whose implementation has been extended to the counties.

Additionally, Sh900 million has been allocated to compensate counties for lost revenue occasioned by some free services in the public hospitals.