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Relief for cash-strapped counties as senators finally approve revenue bill

38 lawmakers voted to approve the County Allocation of Revenue (CARA) Bill, 2020.

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by susan muhindi

News29 September 2020 - 13:09
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In Summary


  • • Counties are now a step away from getting the much-awaited revenue after senators on Tuesday voted to approve a bill to allow for disbursement of cash.
  • • The Bill now awaits the approval of the National Assembly before it is sent to the President for signing into law to allow the cash strapped counties to get money.
Members of the Senate Special Committee during a meeting at Parliament buildings on September 17, 2020.

Counties are now a step away from getting the much-awaited revenue after senators on Tuesday voted to approve a bill to allow for disbursement of cash.

Thirty-eight lawmakers voted to approve the County Allocation of Revenue (CARA) Bill, 2020.

The proposed allow splits among the 47 counties the Sh316.5 billion allocated to the devolved units in the 2020-21 budget.

The Bill had stalled in the House for six months following a standoff lover the third basis for sharing revenue among counties.

The Bill now awaits the approval of the National Assembly before it is sent to President Uhuru Kenyatta for signing into law to allow the cash strapped counties to get money.

For the duration of the operation of the Third Basis, no county shall receive an amount of shareable revenue that is less than the amount for the financial year 2019-20.

The earliest the devolved units – most of which have shut down key services - can get money is in the first week of October.

In what may be a reprieve to governors, anyone seeking to amend the formula as approved by the Senate would require two-thirds’ support.

The Bill is prepared alongside the disbursement schedule before the instruments are assented to by the President.

The County Allocation of Revenue Act (CARA) gives Treasury Cabinet Secretary Ukur Yatani the authority to disburse money to counties.

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