BUDGET

Senators give MCAs extra allocation of Sh2.4 billion in 2020-21

County governments have been allocated Sh370 billion in the next financial year

In Summary

• In 2020, SRC released a circular giving guidance on the promotions and annual salary increments for county governments’ staff.

• Some Sh980.32 billion will be spent in paying debts that have been accumulated by 35 county assemblies.

Kirinyaga Senator Charles Kibiru
Kirinyaga Senator Charles Kibiru
Image: COURTESY

All the 47 county assemblies will get an additional Sh2.40 billion in the next financial year if the senate approves a recommendation by a House committee.

The lawmakers' amended the County Allocation of Revenue Bill, 2021 prepared by the National Treasury to give the county assemblies extra cash.

The addition is meant to help the assemblies clear pending bills and meet the Salaries and Remuneration Commission’s circulars on salary increments and promotions of staff.

“The committee recommends the adjustment of county assemblies’ recurrent expenditure ceilings by an additional Sh1.42 billion to enable counties to adhere to various SRC Circulars pertaining to annual salary increments and promotions of staff,” a report by the Senate Finance and Budget committee, that considered the bill, read in part.

The committee is chaired by Kirinyaga Senator Charles Kibiru.

In 2020, SRC released a circular giving guidance on the promotions and annual salary increments for county governments’ staff.

“The Committee recommends that these funds should only be released after verification of pending bills by the Controller of Budget,” the report read in part.

In total, all the county assemblies have been allocated Sh33.25 billion out of Sh370 billion allocated to all the 47 county governments. The remaining amount will go to the county executives.

Out of the Sh33.25 billion, some Sh24.24 billion or 73 per cent will go towards salaries, allowances, gratuity and pensions while Sh8.36 billion will be spent on Operations and Maintenance.

The Bill gives Nairobi, Nakuru, Turkana, Kiambu and Kilifi counties the lion’s share of the Sh370 billion allocated to all the 47 devolved units.

Nairobi gets Sh19.24 billion, up from Sh15.91 billion this year; Nakuru receives Sh13.02 billion compared to Sh10.47 billion; Turkana will get Sh12.60 million against the S10.53 it got in 2020-21.

Kiambu and Turkana will get Sh11.71 billion and Sh11.64 billion, respectively,  compared to Sh9.43 billion and Sh10.44 billion they received in the current financial year.

According to the Bill, Lamu, Tharaka Nithi, Elgeyo Marakwet, Vihiga and Nyamira will get the smallest allocutions, though with marginal increases compared to their current allocations.

Lamu has been allocated Sh3.10 billion against Sh2.59 million it received this year; Tharaka Nithi will get Sh4.21 billion, up from Sh3.92 billion, and Elgeyo Marakwet gets Sh4.60 million, compared to Sh3.86 million this year.

Vihiga and Nyamira get Sh5.06 billion and Sh5.13 million, up from Sh4.65 billion and Sh4.81 billion, respectively, if Parliament approves the Bill.

The allocations are based on the third basis for revenue allocation passed by Parliament last year after months of a stand-off in the Senate.

The formula provides for an eight-parameter formula, with the greatest weight placed on the basic share (20 per cent), population (18 per cent), health (17 per cent), poverty level (14 per cent) and agriculture (10 per cent).

Other parameters are land size (eight per cent), roads (eight per cent) and urban area (five per cent).

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