The Pie Cutter Henry Rotich and How he will share the pie

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Only six counties will get more than Sh10 billion allocation in Treasury Cabinet Secretary Henry Rotich’s Sh2.7 trillion budget tabled in Parliament Thursday. Nairobi will receive the lion’s share of the revenue after the Treasury allocated Sh15.6 billion to the capital out of the total equitable share of Sh310 billion. Turkana, Nakuru, Mandera, Kilifi and Kakamega counties will each receive slightly more than Sh10 billion.

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“The county government’s equitable share of revenue was allocated among the county governments on the second basis of revenue allocation criteria approved by Parliament in accordance to Article 217 of the Constitution,” the Treasury said in the Division of Revenue Bill, 2019 tabled in the House yesterday. The allocation to 47 county units for the financial year beginning July 2019 and ending June 2020 is about Sh6 billion more than the current fiscal year’s allocation of Sh304.9 billion. The county governments will also receive Sh13.9 billion additional conditional allocations from the national government to cater for leasing of medical equipment (Sh6.2 billion), compensation for user fees foregone (Sh900 million), Level 5 hospitals (Sh4.3 billion), construction of county headquarters (Sh485 million) and rehabilitation of youth polytechnics (Sh2 billion).

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Consequently, the Treasury says, the revenue forecasting base for the financial year 2018/19 “was over-stated by approximately Sh136 billion.”

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