Economy

Kenyatta signs Bill to disburse Sh302bn to counties

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President Uhuru Kenyatta signs the interest rate Bill at State House in Nairobi on August 24, 2016. FILE PHOTO | PSCU

President Uhuru Kenyatta this morning signed into law the County Allocation of Revenue Bill, 2016. The Act provides for disbursement of Sh302.2 billion to the 47 county governments in the financial year that began this month.

The money will be released to the devolved units whose budgets have been approved by county assemblies and the Office of the Controller of the Budgets.

The allocation comprises of an equitable share Sh280.3 billion and conditional allocations amounting to Sh21.9 billion.

The conditional grants include Sh4.1 billion for Free Maternal Health Care to be released on a reimbursement basis, Sh4.5 billion to facilitate medical equipment leasing and Sh4 billion for level five hospitals.

Others are Sh900 million to compensate county health facilities for scrapped user fees, Sh200 million to boost access to emergency medical services in Lamu and Tana River counties which border Somalia, and Sh4.3 billion for county roads.

It also recommends that the National Treasury shall publish a monthly summary of all transfers of allocations and funds given to county governments.

Each county treasury will be required to reflect all transfers by the national government in its books of accounts.

The Bill was presented to the Head of State for his signature by the Speaker of the Senate Ekwe Ethuro.