The National Assembly yesterday Tuesday, March 19, 2024 began debate on the Division of Revenue Bill, 2024 following its Second Reading. 

 The Chairperson,  Budget and Appropriations Committee Hon. Ndindi Nyoro (Kiharu), moved a Motion that sought the House’s adoption of the Committee's Report on the  Division of Revenue Bill, 2024. 

Hon. Nyoro told the House that the allocations detailed in the Bill were based on the most recent audited accounts of revenue received, as approved by the National Assembly. 

“The proposed Equitable Share for the county governments for Financial Year 2024/25 of Kshs.391.1 billion, is equivalent to 24.9 percent of the last approved audited revenues amounting to Kshs.1.57 trillion for the Financial Year 2020/21; and is above the 15 percent set Constitutional threshold," stated Hon. Nyoro.

 He added that when the Committee met with the Governors, several concerns were raised on the allocation to the counties, considering the many functions they are undertaking. As a result, Hon. Nyoro implored the House to consider supporting the counties with additional resources.

 While seconding the Motion, the Vice-Chairperson, Hon. Mary Emaase (Teso South), noted an anomaly in the distribution of the Equalization Fund to marginalized areas, calling for the 0.5 percent formula to be reviewed.

 “The third policy for identification of marginalized areas provided for visiting of counties to establish areas that should benefit from this Equalization Fund. The Commission on Revenue Allocation (CRA) did actually visit the counties, but when you look at the distribution of funds to marginalized areas, it is not equitable,” Hon. Emaase said. 

She further called on the CRA to provide for equitable sharing, because over the years, there is no time when the Division of Revenue Bill has concurred with the recommendations of CRA, yet this is a Constitutional institution mandated with that responsibility.

 “As a Committee we felt that there is need for the National Treasury to agree with CRA before they submit the Division of Revenue Bill to us, because by the time CRA is recommending the resource allocation, a lot of research has gone into it, so they should get into concurrence so that we do not go into mediation as has been the norm,” she said.