The County Allocation of Revenue Bill, 2024
Status Timeline
Proposed
Active now
Public Review
Pending
Debate
Pending
Executive
Pending
Final
Pending
KSh 415.95 Billion Divided Under the Third Basis Formula
Allocates a total of KSh 415,952,200,000 to the 47 county governments for the FY 2024/2025. This horizontal distribution is based on the Third Basis Formula under Article 217 of the Constitution, which factors in:
- Population (18%)
- Health Index (17%)
- Agriculture Index (10%)
- Urban Index (5%)
- Poverty Index (14%)
- Land Area Index (8%)
- Roads Index (8%)
- Basic Share Index (20%)
Strict Budget Ceilings Set for Recurrent Expenditure
Under Clause 5 and the Second Schedule, the Bill sets explicit budget ceilings for recurrent expenditure in the 2024/2025 financial year:
- County Assembly Ceilings: Total of KSh 40,196,186,165 across all counties.
- County Executive Ceilings: Total of KSh 33,756,814,187 across all counties.
New Accountability Rules for Transferred Devolved Functions
Where a county transfers a function to the National Government under Article 187 of the Constitution:
- The county executive and national government must determine the cost of the function, and the county assembly must appropriate an amount not less than the previous financial year's allocation.
- Receiving national entities must submit quarterly reports to the Senate and the respective county assembly.
- The Auditor-General must prepare and submit a performance audit report within three months after the end of the financial year.
Mandatory Monthly Transfer Reporting by the Cabinet Secretary
To ensure transparency and tracking of funds, the Cabinet Secretary responsible for finance is mandated under Clause 7 to publish a monthly report on the actual transfers of all revenue allocations to county governments.
Bill No.
Senate Bills No. 25
Gazette No.
Supplement No. 95
Sponsor
Ali Ibrahim Roba
Background
The County Allocation of Revenue Bill, 2024 is introduced pursuant to Article 218(1)(b) of the Constitution of Kenya. Its principal object is to provide for the allocation of an equitable share of revenue raised nationally among county governments for the financial year 2024/2025, in accordance with the resolution approved by Parliament under Article 217.
Key Amendments
While primarily an annual allocation Act, this Bill operationalizes revenue sharing under the Third Basis Formula. It specifically applies the formula's weights to allocate KSh 415,952,200,000 across the 47 county governments. It also works in tandem with the Public Finance Management Act (Cap. 412A) to enforce strict compliance and reporting.
New Obligations
- County Treasuries: Must reflect all National Government transfers separately in their books of accounts and estimates of revenue. They must submit quarterly and annual reports on actual transfers received to the National Treasury, in the format prescribed by the Public Sector Accounting Standards Board.
- National Government Entities: Any national entity managing a transferred county function must submit quarterly status reports to both the Senate and the respective county assembly.
- Cabinet Secretary for Finance: Must publish a monthly report in the Gazette showing actual transfers made to county governments.
Penalties
- Financial Misconduct: Under Clause 9, any serious or persistent non-compliance with the provisions of this Act constitutes an offence of financial misconduct under the Public Finance Management Act (Cap. 412A).
Transitional Provisions
- Transferred Functions Funding: Monies appropriated for transferred functions under Article 187 of the Constitution must be transferred directly to the National Government. The county allocation for such functions cannot be less than the amount appropriated in the preceding financial year.
No updates tracked yet
Updates will be visible here once they are approved and applied to this bill.