Counties will get KSh 14.69 billion more beginning July 1 from KSh 385.4 billion this financial year to KSh 400.1 billion.
The increase is expected to boost provision of services by ensuring county governments are adequately funded to perform their functions outlined in the Fourth Schedule of the Constitution.The Division of Revenue Act 2024 also allocates KSh 2.5 trillion to the National Government.It also implements Article 204 of the Constitution on the Equalisation Fund, providing KSh 7.8 billion which is equivalent to 0.5 per cent of the last audited revenue accounts.The announcement was made when President William Ruto signed into law the Supplementary Appropriation Bill 2024 and the Division of Revenue Bill 2024 at State House, Nairobi, on Monday.
The Supplementary Appropriation Act 2024 now reduces KSh 32.6 billion from various budget allocations. With the rationalisation of expenditures, the law authorises the spending of KSh 102 billion from the Consolidated Fund for the year ending June 30, 2024.
The education budget has been enhanced, with University education receiving KSh 4.468 billion and secondary education KSh 1.112 billion.
Development spending has also been redirected to priority areas and reduced by KSh 75.29 billion, while KSh51.12 billion has been allocated for emerging pressing needs.
The law also regularises KSh 23.67 billion expenditure under Article 223 of the Constitution that allows financing of emergencies and later approval by Parliament.
These expenditures include emergency interventions such as KSh 4.3 billion to the State Department for Arid and Semi-Arid Areas and Regional Development for humanitarian support to those who were affected by floods.
Additionally, KSh 3 billion has been allocated to the Department of Internal Security for El Nino disaster management, and another KSh3 billion for the fertiliser subsidy programme.
Following floods that destroyed infrastructure, KSh1 billion has been allocated for emergency rehabilitation of roads.
Furthermore, KSh 11.4 billion has been set aside for the Kenya Revenue Authority to enhance revenue collection efforts (KSh 4 billion) and pay pending bills worth KSh 7.4 billion.
In addition, KSh 2 billion has been allocated to take care of the medical insurance for the National Police Service.
The approved additional expenditures are designed to address emergency interventions over destruction caused by the El Niño rains and other critical needs. These include KSh 5.3 billion for emergency relief assistance, KSh 3.3 billion for security operations and KSh 1.1 billion for mopping up excess milk by the New KCC.
The funds are expected to help the government fulfil its commitment to dairy farmers by ensuring prompt monthly payments and increasing the price to KSh 50 a litre.
See Also:
Ruto Signs Two Crucial County Bills Into Law
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