Counties will be able to unlock the much-needed funds for the 2024/25 financial year should the Bill be passed by the National Assembly and the Senate
The National Assembly and the Senate have reached a consensus over the County Governments Additional Allocations Bill of 2023, paving way for increased allocation of funds to county governments.The Bill, whose mediated version was introduced on the floor of the National Assembly for debate by the Budget and Appropriation committee chairman Ndindi Nyoro, pushes for additional allocations to counties in the 2023/24 Financial Year.
“This House supports devolution that is why this Bill introduces the necessary provisions that will fast track access to funds by county governments,” said Nyoro who is also Kiharu MP.
If the Bill is passed by the National Assembly and the Senate, counties will be able to unlock much-needed funds by incorporating provisions for additional allocations from proceeds of loans and grants from development partners.
Notable provisions in the County Governments Additional Allocations Bill include facilitating the transfer of conditional and unconditional allocations from the Consolidated Fund to the respective County Revenue Funds and special purpose accounts.
“The requirements under sections 191A to 191E of the Public Finance Management Act shall not apply to the 2023/24 and 2024/25 Financial Years. This exemption streamlines the allocation of funds to county governments without the need for intergovernmental agreements,” the Bill says in part.
It further details conditional allocations that are earmarked for various projects and initiatives, including financing for projects such as the National Agricultural Value Chain Development Project (NAVCDP), Water and Sanitation Development Project (WSDP), Primary Healthcare in Devolved Context Program and Locally-Led Climate Action Program (FLLoCA).
Others are Agriculture Sector Development Support Programme II (ASDSP II), Drought Resilience Programme in Northern Kenya (DRPNK), Emergency Locust Response Project (ELRP), Kenya Informal Settlement Improvement Project (KISIP II), Kenya Livestock Commercialization Project (KELCOP) and Aquaculture Business Development Project (ABDP).
Notable allocation highlighted in the Bill is the conditional allocation, which is the sum to be transferred to the participating county government in accordance with the Conditional Allocations Framework, amounting to Sh6.187 billion, financed by proceeds from a World Bank Loan set for County Climate Resilience Grant.
It will be allocated on the basis of factors that reflect relative expenditure needs for climate action including rural area, rural population, poverty and performance-based indicators.
“We want to make it clear that the delay in the passage of this Bill caused by the conservatory orders obtained by Council of Governors that injuncted any process in finalising this Bill. It is not this House,” Speaker Moses Wetang’ula said.