How 47 counties will share Budget billions - Daily Nation

Nairobi and Turkana to get biggest share of county cash from July

Tuesday February 10 2015

National Treasury Cabinet secretary Henry Rotich shows off the Budget briefcase at Treasury buildings in Nairobi on June 12, 2014 before he proceeded to read the financial statement in Parliament. Nairobi and Turkana will receive the largest share of the Sh253 billion to be given to counties in the next financial year which starts on July 1. FILE PHOTO | SALATON NJAU |

National Treasury Cabinet secretary Henry Rotich shows off the Budget briefcase at Treasury buildings in Nairobi on June 12, 2014 before he proceeded to read the financial statement in Parliament. The Sh17.4 billion kept aside for primary school laptops will be spent on other uses in a review of the budget. FILE PHOTO | SALATON NJAU |  NATION MEDIA GROUP

By ISAAC ONGIRI
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Nairobi and Turkana will receive the largest share of the Sh253 billion to be given to counties in the next financial year, which starts on July 1.

The total amount to be given to the 47 counties will, however, increase to Sh274 billion, when conditional grants for key projects and money for the equalisation fund are factored into the allocations.

This will be the third time the two counties will be bagging the highest share of allocation since the launch of devolution after the 2013 General Election.

Nairobi will get Sh12.7 billion compared with the Sh11.3 billion it received in the last financial year, while Turkana will get Sh10.2 billion, up from the Sh9.1 billion it received in the current financial year.

On the flip side, Lamu, Isiolo and Tharaka-Nithi will get the lowest share of the allocation.

Lamu will get Sh2 billion, Isiolo Sh2.9 billion and Tharaka Nithi Sh3 billion. Lamu is the smallest of the 47 counties. By the end of the current financial year, it will have received Sh1.8 billion, meaning that its allocation will increase by Sh200 million in the next year.

SHARE REVENUE

The sharing of the revenue is contained in the proposed County Allocation of Revenue Bill 2015 as prepared by the National Treasury.

“It is important to point out that some of the resources raised nationally may not be sufficient to finance all the proposals made by the CRA,” the Bill reads in part.

The Commission on Revenue Allocation (CRA) had proposed an allocation of Sh282 billion but the National Treasury has reduced this to Sh253 billion.

Although Nairobi received the highest allocation in the current and last financial year, the county was last week ranked in a World Bank report among the lowest spenders on development, compared with Turkana, which spent the largest share of its allocation on development projects.

Wajir, Turkana, Bomet, Machakos, Murang’a, Homa Bay, West Pokot, Trans Nzoia, Kisii and Nyamira, in that order also spent more than 30 per cent of their funds on development.

However, Mombasa, Kisumu, Nakuru and Nairobi were among counties where spending on development was less than two per cent of their allocations. The lion’s share was gobbled up by salaries and expenses.

Besides Nairobi and Turkana, the other counties that will get large allocations in the next financial year are Mandera (Sh8.7 billion), Kakamega (Sh8.7 billion), Bungoma (Sh8.2 billion), Nakuru (Sh7.9 billion), Kiambu (Sh7.3 billion), Kilifi (Sh7.3 billion), Kitui and Wajir (Sh7.0 billion).

LOWEST ALLOCATION

Besides Lamu, the counties that will receive the lowest allocation are Isiolo (Sh2.9 billion), Tharaka Nithi (Sh3.1 billion) and Elgeyo/Marakwet (Sh3.2 billion).

Taita-Taveta County will get Sh3.2 billion, Laikipia Sh3.4 billion, Kirinyaga Sh3.4 billion, Embu Sh3.7 billion, Vihiga Sh3.8 billion and Tana River Sh3.9 billion.

The 2015/2016 estimates include Sh48 billion in additional allocations to county governments as contained in the National Treasury’s policy statement released over a week ago.

“After making adjustments, the county governments’ equitable share of revenue for the financial year 2015/2016 is estimated to be Sh274.1 billion,” the draft budget policy statement says.

Other allocations to be seconded to the county government include Sh1.98 billion as conditional grants to finance the leasing of medical equipment. Another Sh3.3 billion conditional grant from the fuel levy will also be distributed to the 47 counties together with Sh2 billion to supplement funding for Level 5 hospitals.

Meru, Tharaka-Nithi, Embu, Kirinyaga, Murang’a and Nyeri will also benefit from an additional Sh878 million to be obtained from IFAD to increase sustainable food production and incomes for poor rural households in the six counties.

All the counties will also get a grant from Denmark amounting to Sh733.65 million for health facilities and Sh6.99 billion in conditional allocations from loans and other grants.

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