By Tajeu Shadrack Nkapapa
The County Allocation of Revenue Bill, 2024 has undergone first reading in the National Assembly.
The principal object of this Bill is to make provision for the allocation of revenue raised nationally among the county governments for the financial year 2024/25.
Section 3 of the Bill contains the objects and the purpose of the Bill which is to provide for the allocation of revenue raised nationally for the financial year 2024/25 as well as the transfer of the county allocations from the Consolidated Fund to the respective County Revenue Fund.
The County Allocation of Revenue Bill proposes an equitable share for counties in the upcoming financial year, representing a significant increase from 2022/23.
The County Allocation of Revenue Bill for the year 2024 establishes a framework for the distribution of funds to counties, taking into account variables such as population size, poverty rates, and infrastructure progress.
Referred to as the Third Basis Formula, this formula seeks to mitigate economic inequalities across different counties.
If the Bill is enacted respective national government will be mandated to publish monthly reports by the national government, on actual transfers of all allocations to county governments.
Section 4 of the Bill deals with the allocation of equitable share of revenue raised nationally to each county government.
Section 5 of the Bill provides for budget ceilings for recurrent expenditure for county governments in accordance with section 107(2)(a) of the Public Finance Management Act No. Cap 412A.
Section 6 of the Bill provides for the modalities of funding of transferred functions.
Section 7 of the Bill provides for the publishing of monthly reports by the national government, on actual transfers of all allocations to county governments.
Section 8 of the Bill provides for the respective county treasury to reflect the total allocations from the national government separately in the County Finance Bill and reflect all transfers in the books of accounts.
Section 10 of the Bill provides for use of the third determination of the basis of the allocation of revenue among counties as approved by Parliament pursuant to Article 217 (7) of the Constitution.