The County Governments Additional Allocations Bill, 2023
Status Timeline
Proposed
Active now
Public Review
Pending
Debate
Pending
Executive
Pending
Final
Pending
KSh 16 Billion Allocated for Local Projects
The First Schedule authorizes KSh 16,016,000,000 in conditional grants from national revenue, targeting infrastructure projects such as county headquarters construction, leasing of medical equipment, and aggregated industrial parks.
KSh 3.04 Billion in Court Fines and Mineral Royalties
The Second Schedule allocates KSh 3,043,584,126.60 in unconditional funds to county governments, consisting of KSh 108,660,979.00 in court fines and KSh 2,934,923,147.60 in mineral royalties.
KSh 33.19 Billion Transferred from Development Partners
The Third Schedule facilitates KSh 33,192,137,406.79 in loans and grants from development partners, funding projects such as the World Bank-financed Locally-Led Climate Action Program (FLLoCA) and DANIDA healthcare support.
Mandatory Quarterly and Annual Financial Reporting
County Treasuries are required under Section 8 to submit quarterly and annual expenditure reports detailing actual transfers received, expenditures made, and compliance with grant conditions.
Bill No.
Senate Bills No. 26 of 2023
Gazette No.
Supplement No. 93 of 2023
Sponsor
Ali Ibrahim Roba
Background
The County Governments Additional Allocations Bill, 2023 is introduced pursuant to Article 202(2) of the Constitution of Kenya. The principal object of the Bill is to provide a legislative framework for allocating additional resources to county governments for the 2023/2024 financial year. These allocations are sourced from the National Government's share of revenue and loans or grants from international development partners, facilitating their transfer from the Consolidated Fund to County Revenue Funds and specialized accounts.
Key Provisions
Additional Allocations Framework (Sections 4 & 5)
- Conditional Allocations from National Revenue: A total of KSh 16,016,000,000 is allocated to counties under the First Schedule for specific projects, including the construction of county headquarters, leasing of medical equipment, aggregated industrial parks, and fertilizer subsidy programmes.
- Unconditional Allocations: Under the Second Schedule, a total of KSh 3,043,584,126.60 is provided from court fines (KSh 108,660,979.00) and mineral royalties (KSh 2,934,923,147.60).
- Development Partner Allocations: Under the Third Schedule, KSh 33,192,137,406.79 is allocated from various credits and grants, including World Bank financing for agricultural projects (NARIGP, NAVCDP, KCSAP), water projects (WSDP), climate programs (FLLoCA), and DANIDA health grants.
- Devolved Functions Allocations: The Fourth Schedule outlines KSh 4,129,261,981.00 in conditional allocations from the National Government for devolved services, including the Livestock Chain Support Project and the De-risking and Value Enhancement (DRIVE) project.
New Obligations
National Government Accountability (Section 6)
- The Cabinet Secretary responsible for finance is mandated to publish a monthly report on actual transfers of all additional allocations by the 15th day of every subsequent month.
County Government Accounting and Reporting (Sections 7 & 8)
- Each County Treasury must reflect all national government transfers in its official books of accounts.
- County Treasuries must prepare and submit quarterly and annual consolidated reports to the National Treasury and the Public Sector Accounting Standards Board detailing:
- Actual transfers received from the National Government.
- Actual expenditure of the allocations under section 5(1) and (2).
- Extent of compliance with allocation terms and intergovernmental agreements.
- Material problems faced during expenditure and execution.
Conditions for Accessing Funds (Section 5(6))
- County governments can only access their allocations under section 5(1)(a) once they have met specific conditions set by the Cabinet Secretary responsible for the respective devolved function at the beginning of the financial year.
- All allocations must be included in the national budget estimates and require a formal, signed intergovernmental agreement before execution.
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