County governments are set to get an extra allocation of Sh55.44 billion in the next financial year if Parliament approves a bill by the National Treasury.
The County Governments Additional Allocations Bill, 2024 allocates grants and loans from the national government and other development partners to the counties.
“The principal object of this Bill is to make provision for the transfer of conditional allocations from national governments share of revenue and from development partners to the county governments for the financial year 2024-25,” the Bill states.
The proposed law is sponsored by Senate Finance and Budget Committee chairman Ali Roba. It has been published for introduction in the Senate for first reading.
The additional funding would push the total allocation to the devolved units for the year to at least Sh446.4 billion.
Already, the National Assembly has approved an allocation of Sh391 billion in equitable share to the counties for 2024-25 financial year.
The Division of Revenue Bill, which contained the equitable share of revenue to the counties and the national government, is currently being considered by the Senate.
In the County Governments Additional Allocations Bill, 2024, the counties will get Sh8.21 billion as conditional grants from the national government and Sh10.52 billion as road maintenance levy fund.
The counties are also getting Sh1.06 billion unconditional grants from court fines and 20 per cent share of mineral royalties.
The devolved units are also set to get Sh35.65 billion from proceeds of loans and grants from development partners.
They include World Bank, Danish International Development Agency (Danida), German Development Bank, International Fund for Agricultural Development and United Nations Fund for Population Activities.
“Additional allocations shall constitute funds agreed upon by the National Assembly and the Senate during the consideration of the Budget Policy Statement,” the Bill states.
According to the Bill, all the grants from the national government include Sh445 million supplement for construction of headquarters in some five counties and Sh4.5 billion for construction of county aggregation and industrial parks.
Also captured in the grants from national government is Sh3.23 billion for payment of community health promoters and Sh30.18 million for performance of the newly devolved museum function.
Nyandarua will get the highest amount of grants from the national government of Sh410.61 million followed by Kakamega and Kilifi which will get Sh377.50 million and Sh366.10 million respectively.
All the 47 county governments will benefit from the Sh10.52 billion RMLF with Kitui getting the lion’s share of Sh445.09 million.
Other big beneficiaries of RMLF are Makueni (Sh415.07 million), Machakos (Sh314.84 million), Nairobi (Sh351.27 million), Kajiado (Sh307.37 million) and Kiambu (Sh335.42 million).
“Each county treasury shall reflect all transfers of conditional allocations by the national government to the respective county government in its books of accounts,” the report states.
The Bill also allocates Sh1.06 billion to some 21 counties Unconditional Additional from Court Fines and 20 per cent Share of Mineral Royalties.
They include Kilifi (Sh177.53 million), Kajiado (Sh160.22 million), Kwale (Sh674.51 million), Garissa (Sh621.26 million), Kiambu (Sh532.55 million), Nandi (Sh17.90 million) and Taita Taveta (Sh8.60 million).
The devolved units will get Sh487.50 million from Danida for provision and promotion of primary health care and Sh10.6 billion from the World Bank for Kenya Informal Settlement Improvement Project.
Others are Sh1.90 billion from World Bank for emergency locust response, Sh1.2 billion from German Development Bank for Local Action Climate program and Sh3.17 billion from the World Bank for Climate Resilience Investment Grant.
The counties will also get Sh1.5 billion from World Bank for Food Systems Resilience Project, Sh5 billion from World Bank for water and sanitation development programme and Sh1.76 billion from the World Bank for Kenya Devolution Support Programme.
The devolved units will also get Sh1.57 billion from the World Bank or Kenya Urban Support Program, Sh378.96 million from Investment Fund for Agricultural Development – Kenya Livestock Commercialisation Project.