The County Wards (Equitable Development) Bill, 2024
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Sixty Percent of Development Budget Reserved for Wards
Under section 5(3)(a), county executive committees must ensure that development allocations for ward projects constitute not less than sixty percent of the county's total development budget, as defined under section 107(2)(b) of the Public Finance Management Act.
Adhoc Ward Projects Identification Committees Established
Section 7 introduces a formal mechanism for project selection by establishing adhoc Ward Projects Identification Committees. These committees facilitate public participation and include:
- A chairperson appointed by the county executive committee member.
- Individual representatives for local businesses, youth, gender groups, professionals, and persons with disabilities.
- The ward administrator, serving as the secretary.
Integration into County Planning and Budgets
To prevent unstructured spending, section 10 mandates that all identified ward projects must be integrated into:
- County budget estimates under section 13 of the Public Finance Management Act.
- The County Fiscal Strategy Paper under section 117 of the Act.
- The official county development plan under section 126 of the Act.
Criminal Penalties for Misappropriating Ward Funds
Section 17 introduces strict criminal liability, declaring that any person who misappropriates or misapplies funds or assets under this Act commits an offence. Conviction results in:
- Imprisonment for a term of not less than five years, or
- A fine of not less than five hundred thousand shillings, or both.
Bill No.
Senate Bills No. 20
Gazette No.
Supplement No. 80
Sponsors
Godfrey Osotsi, Karungo Thangwa
Background
The County Wards (Equitable Development) Bill, 2024, is designed to promote the decentralization of development in line with Article 174 and Article 176(2) of the Constitution of Kenya. The Bill seeks to create an equitable and structured mechanism for identifying and implementing community-based development projects within individual county wards, correcting imbalances in county resources distribution.
Key Amendments
- County Governments Act, 2012 (No. 17 of 2012): Section 19 of the Bill amends section 108(2)(a) of the Act, requiring county governments to explicitly include the implementation of the County Wards (Equitable Development) Act within their mandatory five-year County Integrated Development Plans.
- Public Finance Management Act, 2012 (No. 18 of 2012): The Bill aligns all resource allocation procedures with the budgeting instruments and timelines prescribed under sections 13, 117, 126, and 107(2)(b) of the Public Finance Management Act.
New Obligations
- Equitable Allocation Requirements: Under section 5, county governments must spread development projects equitably across all wards. The allocation criteria recommended by the Commission on Revenue Allocation must be submitted to the County Assembly, which has 21 days to approve or reject them.
- Citizen-Led Project Selection: Section 7 places the obligation of project identification on the residents of each ward through public participation, facilitated by the newly established Ward Projects Identification Committees.
- Strict Oversight & Auditing: Under sections 14 and 15, the county executive committee member responsible for finance must maintain comprehensive internal accounts and submit detailed quarterly implementation reports to the county assembly. These reports must outline project statuses, monies expended, and procurement details.
Penalties
- Misappropriation of Funds (Section 17): Anyone who misappropriates or assists in misappropriating assets or funds allocated under this Act is liable to a minimum prison term of five years, a fine of at least five hundred thousand shillings, or both.
- Conflict of Interest (Schedule, Section 3): Committee members must disclose any personal interest in a proposed project. Failure to disclose interest is an offence carrying a fine of up to five hundred thousand shillings, a prison term of up to three years, or both.
- Administrative Failures (Section 15(2)): It is deemed gross misconduct for a county executive committee member to fail to submit the mandated quarterly reports to the county assembly.
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