The Budget and Appropriations Committee has met to consider Senate Amendments to the Division of Revenue (Amendment) Bill, 2024.
The bill seeks to amend the Division of Revenue Act, 2024, to revise the sharing of the revenue raised nationally between the National and County Governments and reflect the downward revision of projected ordinary revenue collection for the Financial Year 2024/25.
As proposed in the Bill, the shortfall amounts to Ksh 346 billion, occasioned by the failure to enact the Finance Bill 2024 into law.
The sharing of the Ksh 346 billion shortfall between the two levels of government is indicated as Ksh 325.88 billion to be borne by the National Government and Ksh 20.12 billion to be reduced from the County Equitable Share.
What is the proposed new allocation to counties?
However, the new allocation for the National Government was proposed to be Ksh 2.214 trillion, down from Ksh 2.540 trillion, while that of the County Government was adjusted to Ksh 380 billion, down from Ksh. 400.117 billion.
In the Bill, it was observed that the Ksh 380 billion as equitable share to Counties was 24.2 per cent of the last audited and approved revenues of the government for the Financial Year 2020/21, hence meets the constitutional threshold of fifteen per cent as per article 203(2).
During the meeting, the committee’s Chairperson Ndindi Nyoro (Kiharu)noted that this Bill is being considered after the Supplementary Estimates I were passed and signed into law, hence the need to consider our fiscal status.
“We have already passed the Supplementary 1 with the Equalization Fund as it was then and therefore, whatever we discuss today has to be in that context,” Ndindi Nyoro said on Friday, October 11, 2024..
Members also discussed the implications the Senate Amendments to the Division of Revenue Bill would have on Supplementary II Estimates.
The Committee shall have two options; to pass the Bill as amended by the Senate, or to reject the amendments and have the Bill referred to a Mediation Committee under Article 113 of the Constitution.
It is scheduled to Table the report on Tuesday next week in the National Assembly.
