The National Assembly's Budget and Appropriations Committee has approved the Division of Revenue Bill 2024 ahead of its tabling on Wednesday afternoon.
The Bill provides for the sharing of revenue raised nationally between the national government and county governments for the financial year 2024/25, in accordance with the Constitution.
In the period, the total sharable revenue is estimated at Sh2.948 trillion, comprising an allocation of Sh2.549 trillion to the National Government, Sh391.1 billion to the County Government Equitable Share; and Sh7.85 billion to the Equalisation Fund.
In a session chaired by the committee's vice-chairperson and Teso South, Mary Emaase, the members unanimously approved the bill.
The Bill was read for the first time on March 12, 2024 as per Standing Orders committed to the Budget and Appropriations Committee for consideration, facilitation of public participation and reporting to the House.
The Bill, however, seems to have rubbed the Council of Governors (COG) the wrong way. The COG had presented their demand of Sh450 billion as their minimum revenue share estimates down from Sh470 billion proposed earlier.
The Commission on Revenue Allocation (CRA) had proposed counties to be given Sh407 billion down from Sh416 billion during its presentations to the National Treasury.
National Assembly Budget committee chairman and Kiharu lawmaker Ndindi Nyoro said the national government continues to bear shortfalls in revenue but counties continue to receive their full allocation despite the budget cuts affecting national government entities.
According to the Bill, counties will have to be content with the 391 billion shillings that the MP says translates to 24.9 percent of the audited accounts.
He said the government is grappling with financing constraints due to limited access to finance in the domestic and international markets.
