The Equalization Fund Appropriation Bill, 2023
Status Timeline
Proposed
Active now
Public Review
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Debate
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Executive
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Final
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KSh 13.89 Billion Authorized for Marginalized Areas
The Bill authorizes the Equalisation Fund Secretariat to issue KSh 13,893,791,644 out of the Equalisation Fund for the service year ending 30th June, 2023. This total includes allocations for both FY 2021/22 and FY 2022/23 to finance basic services like water, roads, health facilities, and electricity.
Funds Kept Separate From County Revenue Funds
Under Section 4 of the Bill, the appropriated monies are strictly excluded from being paid into the respective County Revenue Funds, ensuring they are managed and disbursed through the designated Equalisation Fund channels.
Approvals Valid Until Project Completion
To prevent project disruption, Section 5 stipulates that the funding approvals remain in force until all projects identified within the specified wards are fully completed, even if the implementation period extends beyond a single financial year.
Strict Dual-Authorization Withdrawal Process
Withdrawals from the Equalisation Fund require authorization by the Controller of Budget along with written instructions from the secretary of the Equalisation Fund Advisory Board through the National Treasury to the Central Bank of Kenya.
Bill No.
Senate Bills No. 3 of 2023
Gazette No.
Supplement No. 7 of 2023
Sponsor
Ali Roba
Background
The Equalisation Fund is established under Article 204(1) of the Constitution of Kenya. Its core objective is to facilitate the provision of basic services—specifically water, roads, health facilities, and electricity—to marginalized areas. The intent is to bring the quality of services in these regions up to the standard generally enjoyed by the rest of the nation.
Key Provisions
Appropriation and Allocation of Funds
- Total Sum Authorized: The Bill authorizes the issuance of KSh 13,893,791,644 from the Equalisation Fund for the financial year ending 30th June, 2023, covering allocations for both FY 2021/22 and FY 2022/23.
- Recurrent Expenditure: KSh 416,813,749 is designated for the administration and expenses of the Equalisation Fund Secretariat.
- Development Expenditure: KSh 13,476,977,895 is allocated for local development projects across designated marginalized counties, constituencies, and wards.
Exclusion from County Revenue Funds
Section 4 explicitly mandates that the funds appropriated under this Act are excluded from being paid into the respective County Revenue Funds. This ensures that the fund maintains its distinct administration process separate from general county allocations.
Project Continuity and Non-Lapsing Approvals
Section 5 provides that, notwithstanding other statutory timelines, the approvals granted under this Act will continue in force until all specified projects in each ward are completed. This acts as an ongoing authorization for the Controller of Budget to permit withdrawals for multi-year projects without requiring re-appropriation.
Withdrawal and Disbursement Mechanism
Section 6 outlines the transaction flow for releasing funds:
- The Controller of Budget must authorize the withdrawal.
- The secretary of the Equalisation Fund Advisory Board must provide written instructions through the National Treasury requesting the withdrawal.
- Upon receiving both, the Central Bank of Kenya is authorized to pay out the approved amounts from the Equalisation Fund Account.
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