Treasury gives Sh198.7 billion for county governments

What you need to know:

  • The Treasury, through the Division of Revenue Bill 2012, says the total shareable revenue in the 2013/14 financial year will be Sh945.5 billion.
  • In case of a shortfall on the actual amount raised nationally, the Bill proposes that the national government meets the shortfall for the county governments.
  • The allocation to counties is 24.2 per cent of the shareable revenue against a constitutional minimum of 15 per cent.

The Treasury has allocated Sh198.7 billion to the 47 county governments in the next financial year, with Nairobi taking the lion’s share at Sh15 billion.

The Treasury, through the Division of Revenue Bill 2012, says the total shareable revenue in the 2013/14 financial year will be Sh945.5 billion.

In case of a shortfall on the actual amount raised nationally, the Bill proposes that the national government meets the shortfall for the county governments.

The allocation to counties is 24.2 per cent of the shareable revenue against a constitutional minimum of 15 per cent.

If the Bill is approved, Nairobi County will get the lion’s share of the funds (Sh15.2 billion), followed by Nakuru (Sh7.4 billion), Kiambu (Sh7.2 billion), Kakamega (Sh6.6 billion), Turkana (Sh6.4 billion) and Nyeri (Sh6 billion). Bungoma, Kisii and Kisumu will get Sh5.2 billion each.

Other counties that will receive huge allocations are Mandera and Mombasa, which will get Sh5.5 billion each and Meru, which will get Sh5.9 billion.

Counties that will receive the least allocations are Lamu, which will receive Sh1.7 billion, Isiolo (Sh1.9 billion), Tharaka Nithi (Sh2 billion), Samburu (Sh2.3 billion), Taita Taveta (Sh2.3 billion) and Vihiga, which will receive Sh2.5 billion.

The Bill was published alongside three others — The Transition County Allocation of Revenue, the County Allocation of Revenue and the Transition County Appropriation.

Finance minister Njeru Githae failed to have the Sh58.8 billion mini budget approved by Parliament Thursday after he allocated only Sh6.7 billion to the counties for the three months to June through the Transition County Appropriation Bill.

Under the County Allocation of Revenue Bill, the Transitional Authority will be charged with the mandate of identifying and gazetting the functions for immediate transfer of revenue following elections due on March 4.

“The gazetted functions shall form the basis for preparing the relevant county estimates of revenue and expenditure for financial year 2013/2014,” the Bill says. The Bill allows the national government to allocate part of its equitable share of revenue raised nationally to provide additional resources to county governments for the performance of all devolved functions.

Special allocations will be made to counties to ensure the continuation of service delivery in regional referral hospitals under a Sessional Paper seeking to upgrade 21 district and provincial hospitals into referral institutions.

Deputy Leader of Government business Amos Kimunya sought House approval to fast-track the Bills, whose publication period was reduced from 14 to three days.

The Bills, which were formally introduced to Parliament, had the referral period to the Finance, Trade and Planning Committee shortened by five days from 10 days.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.