Win for Counties as Government Increases Equitable Revenue

ByHenry Tende
Published on: Apr 27, 2023 05:04
President Ruto assenting to the Division of Revenue Bill No. 9 of 2023. Counties. Photo| Courtesy

Amid a 14-day ultimatum by the council of governors due to the delayed disbursement of funds to various counties, President William Ruto has today increased The County Equitable Share by Sh15.4 Billion.

This comes after the Division of Revenue Bill of the National assembly bill no. 9 of 2023 was assented to by President William Ruto. This move will see funds disbursed to devolved units increase from sh370 Billion in the current financial year to sh385.4 Billion in the coming 2023/2024 financial year

Of the increased amount, sh8.3 billion is allocated to the equalization fund as the national government seeks to address the development imbalances in the country. This is an increase of Sh1.2 Billion from the current financial year’s allocation of Sh7.1 Billion.

In the new development, the devolved units will also be allocated a further Sh11.1 Billion as additional allocations from the National Government share of the revenue. Counties will also receive Sh33.2 Billion as additional allocations from proceeds of loans and grants.

Thursday’s enactment at State House paves the way for the preparation of the annual expenditure estimates for the 2023/2024 financial year.

Questions however remain on the ability of the national government to meet its obligation of releasing the funds on time. Already governors have issued a 14-day ultimatum to the national treasury demanding a disbursement of sh94.35b accrued over a period of three months the national government has failed to disburse equitable revenue to counties.

In response to the strike notice, treasury CS Dr Njuguna Ndungu says counties will receive sh31.45 Billion for the month of February this week while undertaking to pay delayed funds for the months of March and April before the end of May.

Governors are adamant if the delayed funds are not released all operations at the county level will grind to a halt which poses danger to the success of devolution.


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