The County Allocation of Revenue Bill, 2024
Status Timeline
Proposed
Done ยท 17 Sep 2026
Public Review
Done
Debate
Done
Executive
Done
Enacted
Active now
KSh 400.117 Billion Allocated to Counties
The Bill allocates a total of KSh 400,116,788,147 as the equitable share of revenue raised nationally to be distributed among county governments. This allocation is divided into two main components of KSh 158,250,000,000 and KSh 241,866,788,147, distributed using the approved sharing formula under Article 217 of the Constitution.
Recurrent Expenditure Ceilings Set
The Second Schedule sets strict budget ceilings for county governments' recurrent expenditure in the 2024/2025 financial year. The total ceiling for County Assemblies is capped at KSh 41,575,373,479, while County Executives are limited to a total of KSh 33,756,814,187.
Rules on Transferred Functions and Audit Oversight
Where a county government transfers a function to the National Government, the respective county assembly must appropriate funds for it that are not less than the amount appropriated in the preceding financial year. The Auditor-General is required to prepare and submit a special audit report on these transferred functions within three months after the end of each financial year.
Monthly Public Reporting Obligations
Section 7 mandates the Cabinet Secretary responsible for finance to publish a monthly report on the actual transfers of all allocations made to county governments, enhancing transparency in public financial management.
Bill No.
Bill No. 25 of 2024
Gazette No.
Supplement No. 95 of 2024
Background
The County Allocation of Revenue Bill, 2024 is introduced pursuant to Article 218(1)(b) of the Constitution of Kenya. Its primary purpose is to provide for the equitable allocation of revenue raised nationally among the 47 county governments for the 2024/2025 financial year. It facilitates the lawful transfer of these allocations from the Consolidated Fund to the respective County Revenue Funds.
Key Allocations
- Total Equitable Share: The total equitable share of revenue allocated to county governments for the financial year 2024/2025 is KSh 400,116,788,147 (approximately KSh 400.117 billion).
- Allocation Formula: The allocation is shared among counties based on the third determination of the basis of the division of revenue approved by Parliament under Article 217(7) of the Constitution.
- Recurrent Expenditure Ceilings:
- County Assemblies: Total budget ceiling for recurrent expenditure is set at KSh 41,575,373,479.
- County Executives: Total budget ceiling for recurrent expenditure is set at KSh 33,756,814,187.
New Obligations
- Transferred Functions: If a county government transfers a function to the National Government under Article 187 of the Constitution, the county assembly must appropriate funding for that function. The allocation cannot be less than the amount appropriated in the preceding financial year.
- Reporting on Transferred Functions: The National Government entity receiving the transferred function must submit quarterly reports to the Senate and the respective county assembly.
- Auditor-General Reporting: The Auditor-General must prepare a special audit report on the financial and non-financial performance of the devolved function within three months after the end of the financial year, and submit it to the Senate and the relevant county assembly.
- National Treasury Reporting: The Cabinet Secretary for Finance is obligated to publish a monthly report detailing the actual transfers of all allocations to county governments.
- County Treasury Reporting: Each county treasury must reflect all national transfers in its books of accounts and include them in its consolidated quarterly and annual reports in the format prescribed by the Public Sector Accounting Standards Board.
Penalties
- Financial Misconduct: Under Section 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).
Gazettement
The County Allocation of Revenue Bill, 2024 was published in the Kenya Gazette.
First Reading
The Bill was read a First Time in the National Assembly.
Second Reading
The Bill was read a Second Time.
Committee of the Whole House
The Bill was considered clause-by-clause in the Committee of the Whole House.
Third Reading
The Bill was read a Third Time and passed.
Bi-cameral Consideration
The Bill was referred back to the Senate for consideration.
Presidential Referral
The Bill was referred back to Parliament with the President's reservations, and passed without amendments on 5 December 2024.
Presidential Assent
The Bill was signed into law by the President.