Counties will receive Sh385 billion in the next financial year after President William Ruto on Thursday assented to the Division of Revenue Bill, 2023.
The County Equitable Share has increased by Sh15.4 Billion from the current Sh370 billion.
The Head of State appended his signature as his Deputy Rigathi Gachagua, National Assembly Speaker Moses Wetang'ula and Attorney General Justin Muturi witnessed.
The legislators on Thursday last week passed the Division of Revenue Bill, 2023 without amendments and allocated counties Sh385 billion in the next financial year.
During the vote, 25 legislators voted to pass the Bill without amendments, outnumbering Raila Odinga's allies who had pushed for an amendment to give counties Sh407 billion.
The Division of Revenue Bill, 2023, is meant to provide for the equitable Division of Revenue raised nationally between the National and County governments for the Financial Year 2023/24 pursuant to Articles 203(2) and 218 of the Constitution.
The enactment of the Division of Revenue Bill, 2023 now paves the way for the preparation of the annual expenditure estimates for FY 2023/24 and consequentially introduction of the Appropriation Bill 2023 as provided for in Article 221 of the Constitution.
This will ensure building up on the Government’s efforts to stimulate and sustain economic activity, mitigate the adverse impact on the economy and re-position the economy on a sustainable and inclusive growth trajectory.
It will also be achieved through the implementation of a set of programmes under the Bottom–Up Economic Transformation Agenda to support economic recovery and provision of government service delivery.
The County Equitable Share is Sh385.4 billion, of the total projected revenue.
Over the years the equitable share to counties has been steadily rising from Sh316.5 billion in FY 2019/20 to the current level of Sh385.4 billion.
The Equalization Fund is allocated Sh8.3 billion to reduce development imbalances and address the provision of basic infrastructure services such as water, roads, health facilities and electricity in marginalized areas.
This is an increase of Sh1.2 billion from the current FY 2022/23 allocation of Sh7.068 billion for the equalization Fund allocation.
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