Governors have accepted the Sh400 billion proposed by MPs as the equitable share of revenue for counties in the next financial year, ending months of a back and forth between the county bosses and Parliamentarians over the matter.
Council of governors chairperson Ann Waiguru, in a statement on Wednesday May 29, 2024, said that the county bosses agreed to accept the amount proposed by MPs after a mediation process.
The county bosses had previously called for the increase of the equitable share of revenue to counties in the 2024/25 financial year to about Sh439.5 billion.
“The council of governors specially thanks the Senate finance committee led by and by extension the Division of Revenue Allocation Mediation committee of the Senate and National Assembly for increasing the Equitable share to counties by Sh9 billion to arrive at Sh400.1billion in FY 2024/25,” Waiguru said.
“Devolution is sacrosanct in the constitution and adequately resourcing functions that counties are mandated to deliver is progressive and a welcome move,” she added.
The National Assembly had last month approved Sh391.1 billion as part of the share of revenue to be allocated to counties in the new financial year as part of the Division of Revenue Bill, an amount the Senate increased to about Sh415.9 billion.
Governors however, rejected the two figures, insisting on an allocation of Sh439.5 billion to cushion counties from inflation, rising operations and maintenance cost, payments of salaries in counties as well as other added expenditures.
And on Monday this week, both the Senate and the National Assembly reached a compromise, agreeing to the Sh400.1 billion, averting a possible cash crunch in counties.
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