County governments are eagerly awaiting President William Ruto’s decision, as he holds the authority to disburse additional funds to devolved units. The County Government’s Additional Allocations Bill (National Assembly Bill No. 23 of 2023) has been submitted to the President for approval, with a focus on providing extra allocations to county governments for the Financial Year 2023/2024.
The bill outlines a total additional allocation of Sh46,362,301,459 for the FY 2023/24, divided into four categories. From the national government’s share of revenue, Sh10,116,848,690 will be allocated. This amount is designated for subsidizing fertilizer, supporting the Bottom-up Economic Transformation Agenda through the County Aggregated Industrial Parks Programme, constructing county headquarters, and providing library services.
In addition to the national government’s share, county governments will also benefit from unconditional allocations from court fines and mineral royalties, amounting to Sh3,043,584,126. This allocation aims to enhance county governments’ Own-source Revenue, derived from mineral royalties and court fines resulting from contravention of county legislation.
Furthermore, the bill grants conditional allocations from proceeds of loans and grants from development partners totaling Sh29,072,606,661. These funds are allocated for key projects, including initiatives like the National Agricultural and Rural Inclusive Growth Project, National Agricultural Value Chain Development Project, Water and Sanitation Development Project, Primary Health Care in Devolved Context, and County Climate Institutional Support, among others. These projects cover areas such as agriculture, healthcare, water, and climate change interventions.
The legislative process for the bill began with its publication on May 24, 2023. It underwent the first reading on June 6, 2023, sponsored by Ndindi Nyoro, Chairperson of the Budget and Appropriations Committee. The National Assembly passed the bill on June 27, 2023, without amendments. However, the Senate considered and passed it with amendments on October 12, 2023, prompting a return to the National Assembly.
On November 23, 2023, the National Assembly rejected the Senate’s amendments, leading to the formation of a Mediation Committee. The committee reached an agreement on a version of the County Government Additional Allocations (National Assembly Bill No. 23 of 2023) and proposed it to both Houses of Parliament for final passage.
