Counties across Kenya are at risk of losing Ksh. 20 billion from their sharable revenue if Members of Parliament fail to overturn a memorandum by President William Ruto to the Senate.
In the memorandum, the President proposes an amendment to the County Allocation of Revenue Bill (CARA) by reducing funds allocated to counties to Ksh. 380 billion, which is Ksh. 5 billion less than the amount received in the last financial year.
The County Allocation of Revenue Bill, which is an annual law providing for the equitable distribution of nationally raised revenue among the 47 counties, was passed by the Senate on June 11, 2024, and concurred by the National Assembly on June 25.
In the original bill passed by the House, the 47 county governments were to share Ksh. 400.117 billion for the 2024/25 fiscal year, as stipulated in the Division of Revenue Act (DORA) 2024. However, President Ruto argues that the reduction is necessitated by the reorganization and rationalization of the government’s financial arrangements for the 2024/2025 financial year.
Kisii Senator Richard Onyonka, a member of the budget and finance committee processing the President’s memorandum, stated that the committee will refer the issue back to the Senate for a decision. “We want to bring the issue back to the plenary so that Kenyans can see which senator is fighting for devolution and which one will be a rubberstamp of the executive,” he said.
If the lawmakers concur with the President, several counties will see significant reductions in their allocations. For instance, Nairobi County will lose up to Ksh. 1.1 billion, reducing its allocation from Ksh. 20.9 billion to Ksh. 19.8 billion. Bungoma County’s allocation will drop from Ksh. 11.54 billion to Ksh. 10.95 billion, a difference of Ksh. 750 million. Turkana County will lose over Ksh. 700 million, receiving Ksh. 12.95 billion instead of the previously allocated Ksh. 13.63 billion.
Similarly, Kiambu County’s allocation will be reduced by over Ksh. 600 million, from Ksh. 12.71 billion to Ksh. 12.04 billion. Mandera County will receive Ksh. 11.47 billion, Ksh. 600 million less than the Senate’s allocation, while Nakuru County will lose more than Ksh. 750 million, receiving Ksh. 13.39 billion instead of Ksh. 14.13 billion.
The Budget and Finance Committee is expected to table its report to the House on or before Thursday, July 18, 2024.
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