News

Counties receive highest allocation since inception of devolution

Treasury CS Njuguna Ndung'ú received by the Chair of the Budget & Appropriations Committee Ndindi Nyoro, Deputy Leader of Majority Owen Baya, Clerk of the National Assembly Samuel Njoroge, among other leaders.

By Barack Oduor | Thursday, June 13, 2024

The amount was initially Sh12.2 billion when the budget was passed in June 2023 but the amount was increased through a subsequent supplementary budget that added Sh4 billion.

Counties have received a boost from the National Treasury in their allocation in 2024/2025 after the National Treasury Cabinet Secretary Prof. Njuguna Ndung'u announced Sh400.1 billion for the devolved units.

In the last financial year, Njuguna's docket allocated Sh385.425 billion to counties." This is the highest allocation given to counties in 12 years," said Prof. Ndung'u.

Keep reading

At the same time, the Treasury allocated Sh8 billion to the Equalisation Fund. As part of the government's efforts to address marginalisation, the Equalization Fund was established through Article 204, ensuring that 0.5 per cent of the National government's annual revenue is specifically allocated to marginalised areas.

Ndung'u has also proposed Sh10 billion for the fertiliser subsidy programme in the next financial year.

The amount is now a sharp reduction of 38.2 per cent from the Sh16.2 billion that the Treasury allocated for the project in the 2023/24 Financial Year.

The amount was initially Sh12.2 billion when the budget was passed in June 2023 but the amount was increased through a subsequent supplementary budget that added Sh4 billion.

The CS also said the government had allocated a total of Sh54.6 billion to agriculture transformation and inclusive growth.

He indicated the money will go towards various programmes under the giant agriculture sector in the spending period from July 1. The government allocated Sh 6.1 billion for the national agricultural value chain development programme.

To improve livestock production, the CS proposed that Sh2.4 billion for de-risking inclusive of the pastoral economies programme and Sh1.1 billion for the livestock value chain project.

Sh1.5 billion has been allocated to the livestock commercialisation programme, Sh195 million for the embryo transfer project, and Sh300 million for the development of industrial parks.

"The government's focus will be on agriculture transformation and inclusive growth through the value chain support,'' the CS said.

"This aims at supporting farmers through cooperative societies which we consider aggregators and deploy modern risk management instruments that ensure farming is profitable and prices are predictable.''

The increased counties' allocation had excited governors. Through the Council of Governors chairperson Anne Waiguru, the county chiefs said adequate funding of the county functions is a very welcome decision by the governors.

"Devolution is sacrosanct in the constitution and adequately resourcing functions that counties are mandated to deliver is progressive and a welcome move," she said.

The Senate had been pushing for Sh415 billion for counties while the National Assembly wanted counties allocated Sh391 billion.

The Division of Revenue Allocation Bill 2024 was published and introduced in the National Assembly on March 12 this year after which it was considered and approved without amendments on March 20. The National Assembly proposed Sh391 billion for counties and referred the Bill to the Senate for concurrence.

The Senate amended the Bill and proposed Sh415 billion for the counties' shareable revenue.