President William Ruto took decisive action on Monday by signing into law both the Division of Revenue Bill, 2024, and the Supplementary Appropriation Bill, 2024.
The recently approved legislation, endorsed by both the National Assembly and the Senate, paves the way for the equitable distribution of funds between national and county administrations. Additionally, it sanctions the disbursement of Kshs.102B from the Consolidated Fund.
Of the total shareable revenue amounting to Ksh.2.9 trillion, the allocation outlined in the Bill designates Ksh.2.5 trillion for the National Government, with Ksh.400 billion earmarked for counties.
Counties Witness Increase in Allocation from Previous Fiscal Year, Bill Allocates Funds for Marginalized Areas and Flood Relief Efforts.
Counties see a rise in their equitable share, surpassing the Ksh.385 billion allocated in the preceding 2023/2024 Financial Year. The newly ratified Bill not only allots Ksh.7.8 billion to the Equalization Fund but also outlines its utilization for essential services such as water, roads, healthcare, and electricity in marginalized regions.
Meanwhile, the Supplementary Appropriation Bill, championed by Kiharu MP Ndindi Nyoro, is set to greenlight the disbursement of Ksh.102.3 billion from the Consolidated Fund.
This allocation is designated to cover expenses for the service year until June 30, 2024, and will rectify Ksh.23.67 billion in expenditures. A significant portion of these funds is earmarked for addressing the aftermath of recent floods in Kenya.
Allocation Breakdown: Flood Relief, Road Rehabilitation, and Disaster Management Prioritized in Budget.
A detailed breakdown of allocations reveals Ksh.4.3 billion dedicated to providing humanitarian aid to flood victims, with an additional Ksh.1 billion earmarked for urgent road repairs in flood-affected areas. Furthermore, Ksh.3.0 billion has been allocated for El Niño disaster management initiatives.
Beyond disaster relief efforts, funds have been channeled towards crucial programs including the fertilizer subsidy scheme, bolstering revenue collection endeavors at the Kenya Revenue Authority, and enhancing the National Police Service’s medical insurance provisions.
Moreover, supplementary expenditures are slated for emergency interventions, particularly in response to El Niño-induced floods and other pressing priorities.
