The Equalisation Fund Appropriation Bill, 2023
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KSh 10.33 Billion Mobilized for Marginalized Areas
Authorizes the Equalisation Fund Secretariat to issue KSh 10,330,317,433 out of the Equalisation Fund for FY 2021/22 and FY 2022/23 to improve basic services like water, roads, health facilities, and electricity in designated marginalized regions.
Funds Bypassing County Revenue Funds
Under Clause 4, all development funds appropriated under this Act are strictly excluded from being paid into the respective County Revenue Funds, ensuring they are direct-disbursed for specified local projects.
Exemption from Financial Year Lapsing
Clause 5 provides that approvals for projects will remain valid beyond the end of the financial year. Funds will remain authorized for withdrawal until all projects identified in the Schedule are fully completed.
Multi-Step Withdrawal Safeguards
Clause 6 establishes strict controls for withdrawals, requiring written authorization from the Controller of Budget, alongside instructions from the Secretary of the Equalisation Fund Advisory Board through the National Treasury to the Central Bank of Kenya.
Bill No.
Bill No. 3 of 2023
Gazette No.
Supplement No. 7 of 31st January, 2023
Background
The Equalisation Fund is established under Article 204(1) of the Constitution of Kenya. This Bill seeks to provide legal authority for the allocation and spending of monies from the Fund for the financial years 2021/22 and 2022/23 to address developmental backlogs in marginalized areas.
Key Provisions
Budgetary Allocations
- Total Fund Release: KSh 10,330,317,433.
- Recurrent Expenditure: KSh 309,909,523 designated for the expenses of the Equalisation Fund Secretariat.
- Development Expenditure: KSh 10,020,407,910 designated for basic services across specified wards and constituencies.
Exclusion from County Revenue Funds
To preserve the targeted focus of the Equalisation Fund, Clause 4 states that the appropriated funds must not be deposited into the general County Revenue Funds.
New Obligations
Administration and Oversight
- Equalisation Fund Secretariat: Responsible for applying the KSh 10.33 billion towards the specific counties, constituencies, and wards listed in the Schedule.
- Controller of Budget: Must authorize all withdrawals based on the completion progress of the projects listed in the Schedule.
- Withdrawal Protocols: Any withdrawal must have written instructions from the Secretary of the Equalisation Fund Advisory Board transmitted through the National Treasury to the Central Bank of Kenya.
Transitional Provisions
Project Continuity
Clause 5 ensures that funding approvals do not lapse at the end of the financial year on 30th June 2023. Instead, the authority to withdraw and spend these funds remains in force until all specified projects within each target ward are completed.
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