Nairobi, Bungoma, Nakuru, Turkana and Kakamega are the biggest losers in President William Ruto’s proposed radical budget cut to counties in the current fiscal year.
In a memorandum to Parliament, the President slashed allocations to the devolved units by a whopping Sh20 billion, from Sh400.1 billion to Sh380 billion.
Consequently, all the 47 devolved units have suffered budget cuts of between Sh1.1 billion and Sh140 million, dealing a heavy blow to their programmes for the year.
If Parliament fails to raise two-thirds to overturn the President’s memo, Nairobi will lose a whopping Sh1.1 billion from its initial allocation.
The Johnson Sakaja-led administration allocation has been slashed to Sh19.98 billion from Sh20.88 billion.
Bungoma is set to lose Sh790 million, from Sh11.45 billion to Sh10.75 billion while Nakuru’s allocation has been reduced by Sh740 million.
Turkana county has lost Sh700 million in the President’s proposal with Kakamega forgoing Sh690 million.
Other big losers are Kiambu which will forgo Sh670 million), Kilifi (Sh610 million), Mandera (Sh580 million), Kitui (Sh570 million), Meru (Sh520 million) and Machakos (Sh500 million).
Others are Wajir (Sh490 million), Kisii (Sh470 million), Uasin Gishu (Sh460 million), and Narok (Sh460 million).
Kajiado will lose (Sh450 million), Kisumu (Sh440 million), Migori (Sh440 million), Makueni (Sh420 million), Trans Nzoia (Sh410 million) and Busia (Sh400 million).
In the memorandum, Ruto declined to sign the County Allocation of Revenue Bill, 2024 which stipulates an allocation of Sh400.1 billion to the devolved units.
The new figure is Sh5 billion lower than what the county governments received in the last financial year, 2023-24, which was Sh385 billion.
CARB is a proposed law that splits among the 47 devolved units, the amounts allocated to them from the national cake.
Instead, the President has proposed an amendment to slash the allocation to Sh380 billion, dealing a heavy blow to counties.
“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,” Ruto said.
“I recommend that the Bill be amended by deleting the First Schedule and replacing it with a Schedule that is attached to the Memorandum.”
In refusing to sign it into law, the President cited the failure to enact the Finance Bill, 2024 which has necessitated the re-organisation and rationalisation of the government's financial arrangements in the current financial year.
Mombasa lost Sh390 million, Siaya Sh390 million, Murang’a Sh380 million, Marsabit Sh370 million, Nyeri Sh330 million while Homa Bay and Garissa are losing Sh420 million each.
Baringo lost Sh370 million, Bomet Sh380 million, Kericho Sh360 million, West Pokot Sh360 million, Tana River Sh350 million and Nyeri Sh330 million.
According to the memo, Kwale loses the least amount at Sh140 million, followed by Lamu (Sh170 million), Tharaka Nithi (Sh210 million), Elgeyo Marakwet (Sh250 million) and Taita Taveta (Sh250 million).
Others are; Vihiga Sh260 million, Isiolo Sh240 million, Embu Sh280 million, Kirinyaga Sh290 million and Laikipia Sh280 million.
Article 115 provides that the Houses of Parliament shall either, by a majority vote, amend the Bill in light of the President’s reservations.
Alternatively, a vote supported by two-thirds of members of each House may pass the Bill a second time without amendment or with amendments that do not fully accommodate the President’s reservations.
