The devolved units are set to receive Sh39 billion to finance projects after Parliament approved a Bill that will allow counties to draw donor cash from the Treasury.
The National Assembly last week agreed with the Senate and approved the Bill that seeks to provide a framework for the disbursement of conditional grants from donors.
President William Ruto is expected to sign into law the Bill, unlocking the transfer of billions of shillings to counties.
The Treasury had in April warned that donors may withdraw Sh39 billion in conditional grants to counties following a stalemate between the Senate and the National Assembly.
The Treasury told Parliament that development partners had raised concerns over the non-movement of conditional grants to the 47 devolved units.
The County Governments Additional Allocations Bill, 2022 seeks to provide additional allocations to county governments for the 2022/23 financial year.
“The object of this Act is to provide for additional allocations from proceeds of loans and grants from development partners,” the Bill states.
The Bill transfers monies received by the national government from the World Bank, Danida and German Development Bank among other lenders to county governments.
Out of the Sh39 billion that is stuck in the Treasury, Sh7 billion is a conditional grant from the National Government share while Sh32 billion is donor funds meant for specific projects.
Each of the 47 counties will receive Sh110.6 million in conditional allocation from the national government revenue except Isiolo and Lamu which will get the lion's share of Sh150.6 million and Sh132.6 million respectively.