Counties face Sh20bn budget cut as Ruto declines Allocation Bill » Capital News

NAIROBI, Kenya, Jul 16 — County governments are bracing for a Sh20 billion cut marking a slide below the Sh385 billion allocation for the 2023/24 Financial Year, the highest since the onset of devolution.

The downward revision that will see the equitable share for devolved units decline from a proposed Sh400 billion to Sh380 billion became apparent on Tuesday when President William Ruto declined to sign the County Allocation of Revenue Bill.

In his memorandum to the Senate, President Ruto cited the withdrawal of the Finance Bill 2024 which he argued had necessitated a government-wide revision of budget allocations.

“NOW THEREFORE, in exercise of the powers conferred on me by Article 115 (1) (b) of the Constitution, I decline to assent to the County Allocation of Revenue Bill, 2024, and refer the Bill for reconsideration by the Senate with the recommendations,” the President’s memo stated.

Senate Speaker Amason Kingi referred the memorandum to the Senate Finance and Budget Committee chaired by Mandera Senator Ali Roba and directed him to expedite the matter to unlock funds for counties.

The Roba-led committee has until Thursday, July 18, to table its report for consideration by the Senate.

Ruto declined to sign the Finance Bill despite rooting for its passage after a chaotic protest that saw protestors storm Parliament on June 25 leaving a trail of destruction and deaths.

President Ruto said the withdrawal of the Bill would result in a budget deficit, with no additional taxation mechanism to finance the Sh3.9 trillion FY2024/25 budget.

Revised County Allocation

In the revised allocations, Nairobi County will still receive the largest share at Sh19.7 Billion, followed by Nakuru County, which will get Sh13.3 billion.

Turkana County will receive Sh12.9 billion, Kakamega Sh12.7 billion and Kiambu Sh12 billion respectively.

Kilifi will receive Sh11.9 billion, Mandera County will receive Sh11.4 billion, and Bungoma County will get Sh10.9 billion.

Kitui is projected to receive Sh10.6 billion while Meru’s allocation is set at Sh9.7 billion.

Wajir will get Sh9.7 billion while Machakos will get Sh9.4 billion.

Kisii County is expected to receive Sh9.1billion while Narok will oversee a Sh9 billion allocation.

Kwale will control Sh8.7 billion and Uasin Gishu Sh8.3 billion.

Makueni is expected to receive Sh8.3 billion, Kisumu Sh8.2 billion and Migori Sh8.2 billion.

Garissa is set to receive Sh8.1 billion while Homa Bay will get Sh8 billion. Kajiado County is set to receive Sh8.1 billion.

Mombasa County will receive Sh 7.7 billion, Marsabit County (Sh7.4 billion), Trans Nzoia (Sh7.3 billion), and Murang’a Sh7.3 billion.

Busia will receive Sh7.3 billion, Nandi (Sh7.1 billion), and Siaya (Sh7.1 billion) while Tana River will get Sh6.6 billion.

Kericho will manage Sh6.6 billion, Baringo (Sh6.5 billion) and West Pokot (Sh6.4 billion).

Nyeri is set to receive Sh6.3 billion while Nyandarua will get Sh5.8 billion.

Samburu is projected to receive Sh5.5 billion, Kirinyaga (Sh5.3 billion), Laikipia (Sh 5.2 billion) and Embu (Sh5.2 billion).

Vihiga is set to receive Sh5.1 billion, Nyamira (Sh5.2 billion) and Taita Taveta (Sh4.9 billion).

Elgeyo Marakwet is set to receive Sh4.7 billion, Tharaka Nithi (Sh4.3 billion), Isiolo County (Sh 4.8 Billion) and Lamu (Sh3.1 billion).

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