The Division of Revenue (Amendment) Bill, 2024 has been introduced in the National Assembly. 

The Bill seeks to provide for equitable sharing of the 𝗿𝗲𝘃𝗶𝘀𝗲𝗱 𝘀𝗵𝗮𝗿𝗮𝗯𝗹𝗲 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝗿𝗮𝗶𝘀𝗲𝗱 𝗻𝗮𝘁𝗶𝗼𝗻𝗮𝗹𝗹𝘆 𝗯𝘆 𝘁𝗵𝗲 𝗻𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗴𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁 𝗮𝗺𝗼𝗻𝗴 𝘁𝗵𝗲 N𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗴𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁 𝗮𝗻𝗱 𝗰𝗼𝘂𝗻𝘁𝘆 𝗴𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁𝘀.

H.E. the President assented to the Division of Revenue Act, 2024 on 10th June, 2024. The Act provides for the division of revenue raised nationally between the national and county governments for Financial Year 2024/25. 

In particular, the Act provides that the total shareable revenue is Kshs.2.9 trillion, out of which Kshs..2.5 trillion was allocated to the National government and Kshs. 400 Billion was allocated to county governments.

The amounts in the Division of Revenue Act, 2024 may only be realized if the projected revenues are actually collected by the national government. 

Following the rejection of the Finance Bill, 2024, the revenue that the Government had initially projected to collect has reduced, this figure has been revised downwards, a reduction of Kshs.346 billion.

To address the shortfall the Division of Revenue (Amendment) Bill, 2024 proposes to reduce the amount allocated to county governments to KSh. 380 billion. This represents 5.81 percent of the total revenue shortfall which is Kshs.20.12 billion.

It is important to note that even with this reduction, county governments will still receive KSh. 380 billion, which is above the constitutional threshold of 15 percent.

The National Government's share of revenue raised nationally has been adjusted downward to KSh. 2.214 trillion. This shortfall in the share of national government revenue has been partly covered by adjustment of budgetary allocations to the Executive, the Legislature, the Judiciary and constitutional commissions in the financial year 2024/25.

The Division of Revenue (Amendment) Bill, 2024 has been introduced in the National Assembly. The Bill has been referred to the Budget and Appropriations  Committee which will meet with relevant stakeholders to prepare and table a Report which the National Assembly will consider. 

Check out the Bill here

http://www.parliament.go.ke/the-national-assembly/house-business/bills