THE DIVISION OF REVENUE (AMENDMENT) BILL, 2024
Status Timeline
Proposed
Done ยท 17 Sep 2026
Public Review
Done
Debate
Done
Executive
Done
Enacted
Active now
Revenue Shortfall Capped at 15% for Counties
The Bill amends Section 5 of the principal Act by inserting a new subsection (1A). This provision guarantees that county governments will not bear more than fifteen percent (15%) of any national revenue shortfall in the 2024/25 financial year, with the national government absorbing the rest.
County Allocations Reduced to KSh 380 Billion
The revised Schedule reduces the County Equitable Share by KSh 20.12 billion, lowering the total allocation from KSh 400.12 billion to KSh 380.00 billion (representing 24.20% of the last audited and approved revenues).
National Government Allocation Slashed by KSh 325.88 Billion
To absorb 94.19% of the KSh 346 billion revenue shortfall, the National Government's allocation is adjusted downward from KSh 2,540.15 billion to KSh 2,214.27 billion.
Bill No.
No. 38 of 2024
Gazette No.
Supplement No. 143 of 2024
Sponsor
Ndindi Nyoro
Background
The rejection of the Finance Bill, 2024, led to a drop of KSh 346.00 billion in projected ordinary revenues raised nationally for the 2024/25 financial year, reducing total sharable revenue from KSh 2,948.12 billion to KSh 2,602.12 billion. The Division of Revenue (Amendment) Bill, 2024, amends the Division of Revenue Act, 2024 (No. 5 of 2024) to divide this shortfall between the national and county governments.
Key Amendments
- Section 5 (Revenue Shortfalls): Substituted to require that any national revenue shortfall in the 2024/25 financial year be borne equitably by both levels of government. A new subsection (1A) is inserted, establishing that the proportion of the shortfall borne by county governments must not exceed fifteen percent (15%) of the total shortfall.
- The Schedule: Deletes the original allocation schedule and replaces it with a new allocation schedule:
- Total Sharable Revenue: KSh 2,602,123,505,582
- National Government Share: KSh 2,214,270,690,857
- Equalization Fund: KSh 7,852,814,725 (0.50%)
- County Equitable Share: KSh 380,000,000,000 (24.20%)
New Obligations
- County Budget Revisions: County governments are expected to revise their local budgets downward to reflect the reduced equitable share of KSh 380.00 billion.
- National Government Austerity: The National Government must absorb a KSh 325.88 billion budget cut, to be managed through expenditure reductions and austerity measures within the Executive, Legislature, Judiciary, and constitutional commissions.
Gazettement
The Bill was published in Gazette No. 143.
First Reading
The Bill was read a First Time.
Second Reading
The Bill was read a Second Time.
Committee of the Whole House
The Bill was considered in the Committee of the Whole House.
Third Reading
The Bill was read a Third Time and passed.
Bi-cameral Consideration
The Bill was forwarded to the Senate for consideration.
Mediation (Bicameral)
Senate amendments were rejected and the Bill was referred to a Mediation Committee.
Presidential Assent
The Bill received Presidential Assent.