President Ruto clears way for release of county funds

President William Ruto has signed the County Allocation of Revenue Bill and Equalization Fund Appropriation Bill 2023, paving the way for the release of county monies.

The Bill was passed by the Senate last month without any amendments since the allocations are guided by the revenue-sharing formula which will be in place for the next five years.

The Bill makes provision for the allocation of revenue raised nationally among the county governments for the Financial Year 2023-2024

The revenue allocation by the national government gives counties the Financial muscle to cater to their respective developmental needs and aid their ability to function.

Going further, at least 34 constituencies will benefit as the Equalization Fund Appropriation Bill 2023, now becomes law.

The Bill proposes the issuance of monies out of the Equalisation Fund to counties in which marginalized areas fall for the provision of crucial basic services.

The 34 constituencies are set to share the Sh13,893,791,644 from the Equalisation Fund secretariat being the allocation for financial years 2021-22 and 2022-23.

They include Turkana, Mandera, Wajir, Marsabit, Samburu, West Pokot, Tana River, Narok, Kwale, Garrisa, Kilifi, Taita Taveta, Isiolo and Lamu.

Early this month, Deputy President Rigathi Gachagua said the government will review the process in which the marginalized counties benefiting from equalization funds were identified.

He noted there have been concerns among some governors who argue there are sub-counties with similar climatic conditions but were left out.

The Fund is established under Article 204(1) of the Constitution to facilitate the provision of basic services including water, roads, health facilities and electricity to marginalised areas to the extent necessary to bring the quality of those services in those areas to the level generally enjoyed by the rest of the nation.

The Constitution requires that Treasury pay one-half per cent of all the revenue collected by the national government each year.

It is calculated on the basis of the most recent audited accounts of revenue received, as approved by the National Assembly.

The Fund is established under Article 204(1) of the Constitution to facilitate the provision of basic services including water, roads, health facilities and electricity to marginalised areas to the extent necessary to bring the quality of those services in those areas to the level generally enjoyed by the rest of the nation.

The Constitution requires that Treasury pay one-half per cent of all the revenue collected by the national government each year.

It is calculated on the basis of the most recent audited accounts of revenue received, as approved by the National Assembly.