Uhuru signs Sh370bn revenue Bill into law

President Uhuru Kenyatta has signed the 2020/2021 County Revenue Allocation Bill into law, paving the way for disbursement of funds from Treasury to the counties.

The law allocates counties a total of Sh369.87 billion comprising equitable sharable revenue of Sh316.5 billion, national government grants (Sh13.7 billion), road maintenance levy (Sh9.4 billion), as well as loans and grants (Sh30.2 billion).

Other allocations include leasing of medical equipment (Sh6.2 billion), level five hospitals (Sh4.3 billion), youth polytechnics (Sh900 million) and county headquarters (Sh300 million).

The new law divides national revenue allocated to counties among the 47 devolved units through a formula developed by the Commission on Revenue Allocation (CRA).

The Sh369.87 billion allocation was just approved by MPs, fast-tracking a process that had been delayed by Senators as they clashed over the revenue formula.

Delays

The Bill was published in April but was only approved by Senate last month after delays.

Late enactment of the Bill has seen counties go without funds from the exchequer since the start of the 2020/21 financial year on July 1, occasioning a delay in payment of salaries and a halt in implementation of development projects.

The Council of Governors (CoG) had threatened to shut down the counties and accused Senators of delaying the process.

County bosses had also threatened to institute measures to have the Senate dissolved for failing to execute its key constitutional mandate.

CoG chairman Wycliffe Oparanya was furious with Senators “for taking us for a ride” as he blamed the lawmakers for doing little to enact the law.

“The Senate wrote us a very casual letter telling us to give it more time to pass the Bill. What does that mean? How much time do senators need to enact the law?” Mr Oparanya wondered at the time.

No salaries

As a result, Governors sent home the bulk of their employees who have gone without salaries for three months. 

Counties have not been given their July, August and September share of national revenue.

The governors, however, had retained “minimal staff” at hospitals, who review emergency cases. 

A dispatch from State House indicated that Senate Speaker Kenneth Lusaka presented the Bill to the President for assent at a ceremony attended by Speaker of National Assembly Justin Muturi and National Treasury CS Ukur Yattani. 
 
Also present were Leaders of Majority in the Senate and the National Assembly, Samuel Poghisio and Amos Kimunya, Clerks of both Houses, Jeremiah Nyegenye (Senate) and Michael Sialai (National Assembly), Solicitor General Ken Ogeto and State House Deputy Chief of Staff Njee Muturi.