Counties to get Sh42bn in equitable revenue share

DP William Ruto greets Council of Governors Chairman Josephat Nanok during the IBEC meeting in Karen on February 6, 2018. County governments will receive Sh368 billion in equitable share of revenue this financial year. PHOTO | CHARLES KIMANI | DPPS

What you need to know:

  • Another Sh54 billion will be conditional grants, bringing the total amount to Sh368 billion.
  • Mr Ruto noted that during the last financial year, counties were allocated Sh302 billion  and Sh 24 billion in conditional grants.

  • Kitui Governor Charity Ngilu welcomed the government’s Big Four agenda, saying it was aimed at transforming the lives of Kenyans.

County governments will receive Sh368 billion in equitable share of revenue this financial year, up from last year’s Sh326 billion.

Deputy President William Ruto said Sh314 billion would be in form of equitable share of revenue while Sh54 billion is conditional grants, bringing the total amount to Sh368 billion.

Addressing the Intergovernmental Budget and Economic Council members Tuesday at his Karen office, Nairobi, Mr Ruto noted that during the last financial year, counties were allocated Sh302 billion  and Sh 24 billion in conditional grants, totalling to Sh326 billion.

“For the first time in the last five years, I must say this is the only time we have agreed on revenue share without any push and pull. We will now present one figure to the National Assembly,” said Mr Ruto.

COMPROMISE

He said the increase in allocation was arrived at after the Treasury and the Commission on Revenue Allocation (CRA) reached a compromise.

The meeting also heard that 18 counties have not audited their assets and liabilities since devolution started.

The counties include Migori, Homa Bay, Vihiga, Narok, Kisumu, Nandi, Trans Nzoia, Samburu, Turkana, Machakos, Tharaka Nithi, Embu, Meru, Garissa, Taita-Taveta, Tana River, Mombasa and Kakamega.

“Liabilities amounting to Sh70 billion and assets in form of 420,000 pieces of land were recovered in the counties,” said Dr Billow Khalid, a member of Intergovernmental Relations Technical Committee.

Mr Ruto asked counties which were yet to complete the process to expedite it so they can know what belongs to them.

INTERNAL AUDITS

He also asked them to quickly complete internal audits on the Sh99.2 billion pending bills in order to settle genuine claims.

He said business people were suffering for mistakes they did not commit. “Small-scale traders are hard hit by failure to resolve this issue. Once the bills are verified, legitimate ones should be paid through a supplementary budget,” said Mr Ruto.

Controller of Budget Agnes Odhiambo said some process verification had indicated that some bills were not genuine.  She said the Auditor-General would be engaged where there were irregularities.

“In the next financial year, counties will factor in payment of verified bills,” she said.

IMPRESSIVE

Council of Governors Chairman Josephat Nanok said it was impressive that the national government was committed to working with county governments in implementing the Big Four agenda – manufacturing, healthcare, affordable housing and food security.

“On behalf of the council, I want to assure you that we are ready to work with the national government in implementing its development agenda,” said Mr Nanok.

Kitui Governor Charity Ngilu welcomed the government’s Big Four agenda, saying it was aimed at transforming the lives of Kenyans.

“We are ready to capture the implementation of what the country needs. I have already started in my county the issue of food security. We expect to harvest green grams worth millions of shillings as part of our efforts to eliminate food insecurity,” she said.

CREATE JOBS

“It is also through manufacturing that we can help the youth get jobs. We want to assure the national government that we are together in ensuring successful implementation of these programmes,” said Mrs Ngilu.

Treasury CS Henry Rotich assured the meeting he would ensure timely disbursement of funds to counties.

CSs Eugene Wamalwa (Devolution), Sicily Kariuki (Health) and Mwangi Kiunjuri (Agriculture) attended the meeting. Governors Salim Mvurya (Kwale), Anne Waiguru (Kirinyaga), Wycliffe Oparanya (Kakamega), Wilbur Otichilo (Vihiga), Joseph Lenku (Kajiado), Joyce Laboso (Bomet), Mwangi wa Iria (Murang’a), John Lonyangapuo (West Pokot), Francis Kimemia (Nyandarua), Stephen Sang (Nandi), Fahim Twaha (Lamu), Mahamud Ali (Marsabit), Muthomi Njuki (Tharaka-Nithi) also attended.