Economy

Counties set to get funds as MPs approve revenue Bill

house-SENATECHERARGEI0708GG

Parliament buildings in Nairobi. FILE PHOTO | NMG

The National Assembly last evening approved the County Allocation of Revenue Bill, 2020, paving the way for release of funds to counties.

President Uhuru Kenyatta is expected to sign the Bill into law paving the way for counties to access money after a three-month delay.

The Bill allocates counties a total of Sh369.87 billion comprising of equitable sharable revenue of Sh316.5 billion, national government grants (Sh13.7 billion), road maintenance levy (Sh9.4 billion), loans and grants (Sh30.2 billion).

Other allocations include leasing of medical equipment (Sh6.2 billion), level five hospitals (Sh4.3 billion), youth polytechnics (Sh900 million) and county headquarter (Sh300 million).

The County Allocation of Revenue Bill 2020, divides the revenue raised nationally and allocated to county governments through the Division of Revenue Act among the 47 counties. The enactment of the Bill will allow for withdrawal of county funds from the Consolidated Fund and facilitate the transfer of these funds to respective County Revenue Fund.

The Bill was published on April 17 but was delayed at the Senate until September 29.

Counties have gone without funds from the start of the new financial year on July 1, after senators failed to agree on a new revenue sharing formula to guide allocation for the next five years.

The National Assembly last week approved the new revenue sharing formula.

The MPs also approved the County Allocation of Revenue Bill last evening paving the way for President Uhuru Kenyatta to sign it into law.