The County Governments Additional Allocations Bill, 2025
Status Timeline
Proposed
Active now
Public Review
Pending
Debate
Pending
Executive
Pending
Final
Pending
KSh 6.99 Billion Disbursed for Specific County Programmes
Allocates KSh 6,994,031,729 from the National Government's share of revenue to finance key initiatives:
- County Aggregation and Industrial Parks (CAIP) programme: KSh 2,000,000,000
- Community Health Promoters (CHP) project: KSh 3,234,930,000
- Healthcare Workers' Salary Arrears (2017-2021 CBA): KSh 1,759,101,729
KSh 116 Million in Court Fines Allocated to Counties
Provides unconditional allocations of KSh 116,092,724 from court fines collected by the national government. This comprises KSh 108,660,979 for FY 2023/24 and KSh 7,431,745 for FY 2024/25, distributed among specific eligible counties including Kiambu, Machakos, Mombasa, and Murang'a.
KSh 43.1 Billion Transferred from Development Partner Loans and Grants
Authorizes the transfer of KSh 43,101,072,714 from international development partners. Major projects include:
- World Bank (IDA) Loans: Funding for informal settlement improvements (KISIP II), emergency locust response, climate resilience (FLLoCA), water development, and urban support.
- German Development Bank (KfW) Loans: Co-financing FLLoCA climate resilience grants (KSh 1.2 billion) and drought resilience in Northern Kenya.
- Other Partners: Grants and loans from DANIDA, AFD, SIDA, UNFPA, and IFAD.
New Fiscal Reporting Obligations for County Treasuries
Mandates that county treasuries integrate these allocations into their books of accounts and submit consolidated quarterly and annual reports. Under section 8, these reports must detail:
- Actual transfers received up to the end of each quarter.
- Actual expenditure of the allocations.
- Compliance levels with conditions and intergovernmental agreements.
- Explanations of any material problems encountered during expenditure.
Bill No.
No. 2 of 2025
Gazette No.
Supplement No. 12 of 2025
Sponsor
Kimani Ichung'wah
Background
The County Governments Additional Allocations Bill, 2025 is introduced pursuant to Article 202(2) of the Constitution. Its principal object is to facilitate the transfer of conditional and unconditional allocations from the National Government's share of revenue and development partners to the respective county governments for the 2024/2025 Financial Year.
Key Provisions
Types of Allocations
- Conditional Allocations (First Schedule): A total of KSh 6,994,031,729 is allocated from national revenue for the County Aggregation and Industrial Parks (CAIP) programme, Community Health Promoters (CHP) project, and doctor/health worker salary arrears.
- Unconditional Allocations (Second Schedule): A total of KSh 116,092,724 from court fines is provided as unconditional funds to specific counties.
- Development Partner Allocations (Third Schedule): A total of KSh 43,101,072,714 in loans and grants from development partners is allocated for specific projects in health, climate resilience, agriculture, and urban infrastructure.
Allocation Criteria for Climate Resilience Grants
Under section 5(4), conditional allocations funded by KfW and World Bank loans for the County Climate Resilience Investment (CCRI) grant are allocated based on specific criteria:
- First 50 Percent: Distributed based on factors reflecting relative expenditure needs for climate action: fixed share (33.3%), rural population (30%), rural area (13.3%), and poverty (23.3%).
- Second 50 Percent: Distributed on the basis of county performance scores, weighted with the basic allocation.
New Obligations
For National Government
- The National Treasury: Under section 4(3), the National Treasury must facilitate and table any agreement between a county government and a development partner in the National Assembly and the Senate before its inclusion in the Budget Policy Statement.
- The Cabinet Secretary for Finance: Must publish a monthly report in the Kenya Gazette by the 15th day of each subsequent month detailing actual transfers of additional allocations disbursed to counties (section 6).
For County Governments
- Accounting and Reflecting Transfers: Each county treasury must reflect all transfers of conditional allocations in its books of accounts (section 7).
- Consolidated Reporting: County treasuries must report on actual transfers, expenditures, compliance with conditions, and any material problems as part of quarterly and annual reports required under the Public Finance Management Act (section 8).
No updates tracked yet
Updates will be visible here once they are approved and applied to this bill.