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Reprieve for counties as Uhuru assents to Division of Revenue Bill 2019

by | Sep 17, 2019 | Counties | 0 comments

President Uhuru Kenyatta has signed into law Division of Revenue Bill 2019 ending allocation stalemate that threatened to cripple operations of the 47 county governments.

The president’s assent comes barely days after senators agreed to KSh 316.5 billion allocated to counties by the National Assembly contrary to their demand of KSh 335 billion.

According to a Statement from State House, the new law allocates KSh 378.1 billion to county governments for the 2019/20 financial year.

“The total allocation of Shs 378.1 billion to county governments represents 36. 46 percent of the audited and approved revenue of the National Government for the financial year 2018/19 against the constitutional threshold of 15 percent”

KSh 316.5 billion is the equitable share of national revenue while 61.6 billion is conditional allocation to the devolved units.

Already the National treasury has disbursed KSh 50 billion to counties to cover expenses for the months of July and August.

The statement also notes the KSh 378 billion represents 36.46 % of the audited and approved revenue of the national government for the financial year 2018/19 against the constitutional threshold of 15%.

Towards the end of August, the governors threatened to shutdown counties mid September if the Division of Revenue bill stalemate was not resolved.

This is after a bitter and long drawn feud between the Senate and the National Assembly with senators insisting the allocation be increased from KSh 316 billion to KSh 335 billion.

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