Division of Revenue: Counties Settle For 400 Billion

The National Assembly and Senate Mediation Committee, co-chaired by Kiharu MP Ndindi Nyoro and Senator Kathuri Murungi, have concluded negotiations on the Division of Revenue Bill.

This translates to a significant increase in resources allocated to counties for the 2024/25 financial year.

The Equitable Share for Counties has reached a record-breaking Ksh 400.1 Billion.

This increase aims to strengthen service delivery at the county level.

Appreciation is extended to President William Ruto for his unwavering commitment to supporting county governments.

The Council of Governors Chair, Governor Anne Waiguru, is commended for her strong advocacy on behalf of counties.

However, Senators have expressed their dissatisfaction in the deal, saying the Senators had bargained for 415 Billion.

Members of Parliament from the Azimio coalition have thrown their weight behind the Senate’s proposal for a higher allocation to counties in the Division of Revenue Bill 2024.

They argue that counties deliver essential services directly impacting Kenyans’ lives and require more resources to function effectively.

Stalemate Over Budget:

Last month, the National Assembly approved the National Treasury’s proposed allocation of Sh391.1 billion to counties.

However, the Senate disagreed, advocating for a higher figure of Sh415.9 billion for the 47 county governments.

This disagreement has resulted in a standoff, with the National Assembly Budget and Appropriations Committee, chaired by Kiharu MP Ndindi Nyoro, rejecting the Senate’s amendments on Monday.

Nyoro explained that the initial budget proposal of Sh4.18 trillion was reduced by Sh270 billion to reach the current Sh3.91 trillion figure.

This reduction limits the available resources for all sectors, including county allocations.