The National Assembly Budget and Appropriations Committee invited the public and stakeholders to submit memoranda on the Division of Revenue Bill, 2024 (National Assembly Bill No. 14 of 2024); by Monday, March 18, 2024 at 5pm. This invitation was done through the Clerk of the National Assembly.

 The Bill sponsored by the Chairperson of the Committee, Hon. Ndindi Nyoro (Kiharu), was published on March 8, 2024; and went through the First Reading on March 12, 2024. Subsequently, the Budget and Appropriations Committee was tasked to consider, facilitate public participation and report to the House.

 The principal object of the Bill is to provide for the equitable division of revenue raised nationally, among the National and county levels of Government, as required by Article 218 of the Constitution, in order to facilitate the proper functioning of Governments and to ensure continuity of service delivery to Citizens. 

In the Financial Year 2024/25, the total sharable revenue is set at Kshs.2.948 trillion; comprising an allocation of Kshs.2.549 trillion to the National Government; Kshs.7.85 billion to the Equalization Fund; and Kshs.391.1 billion, to the County Equitable Share.

 Notably, the allocation to the county governments represents an increase of Kshs.16.6 billion, from the allocation in the Financial Year 2023/24. The increase is meant to facilitate county governments to enhance service delivery in performance of their assigned functions under the Second Part of the Fourth Schedule of the Constitution. 

The allocation also factors in activities aimed at enhancing security operations; national irrigation and fertilizer subsidy initiatives; youth empowerment; provision of national social safety net for vulnerable groups; school examinations fees subsidy and public debt related costs comprising the annual debt redemption cost and interest payment for domestic and external debt, amongst other national obligations.

 In addition to that, the Bill will allow for revenue adjustments, based on performance during the Financial Year 2024/25. Under Clause 5 of the Bill, the National Government will be required to bear any revenue shortfalls to protect Counties from in-year reductions.

 Further, it provides that in the event the national revenue exceeds the projected revenue contained in the Bill, the National Government may utilize the additional revenue to reduce borrowing or meet debt obligations for the fiscal year.

 The Committee will receive views from the stakeholders and prepare a report that shall be tabled in the House for debate.