President Uhuru Kenyatta on Thursday, October 8, signed into law the 2020/2021 County Revenue Allocation (CRA) Bill paving the way for the disbursement of exchequer funds to the Counties.
The Bill was presented to the Head of State for signature by Senate Speaker Ken Lusaka at a ceremony attended by his National Assembly counterpart Justin Muturi and Treasury CS Ukur Yattani at State House Nairobi.
In the new law, counties will be allocated a sum of Ksh369.87 billion in the current fiscal year which includes Ksh316.5 billion of equitable share and Ksh13.73 billion in conditional grants from the government.
President Uhuru Kenyatta signing the CRA Bill at State House on October 8, 2020.
Also included is Ksh9.43 billion from the road maintenance/fuel levy as well as Ksh30.2 billion in loans and grants.
The conditional allocation will be utilized in provision of services such as leasing of medical equipment and rehabilitation of youth polytechnics across all the 47 counties.
In September 2020, senators unanimously voted to approve the third basis for sharing revenue among counties.
All the 41 senators (delegations) present in the House voted to approve the formula after months of a standoff.
The Third revenue sharing formula has been at the heart of all Senate debates since July 2020, leaving the 47 counties crippled due to lack of funding.
The Council of Governors (CoG) was forced to announce a partial shutdown of the counties, stating that they were no longer capable of running the counties, and blamed their colleagues at the Senate for the delays.
President Uhuru Kenyatta had to intervene on the same issue by convening a meeting at State House on Monday. He went on to pledge to add Ksh50 billion to counties in the next financial year.
Members of Senate in session at Parliament Building Nairobi on January 29, 2020.
Kenyans.co.ke © 2020 All Rights Reserved