County governments are set to receive more conditional allocations for the 2018/2019 financial year after President Uhuru Kenyatta signed the Division of Revenue Amendment Act on Friday. The law paves the way for the sharing of national revenue between the national and County governments.
The total shareable revenue between the national government and County governments is currently slightly over Kshs 1.688 trillion, with the national government allocated Kshs 1.370 trillion. The new allocation for Counties is over Kshs 376.481 billion meant to facilitate the leasing of medical equipment, finance construction of County headquarters, compensation for user fees foregone and improve service at Level 5 hospitals.
Under the increased allocations, County government equitable share stands at Kshs 314 billion and the County equalization fund at Kshs 4.7 billion. The State’s share under the increased allocations includes Kshs 4.3 billion earmarked as a special grant to NHIF for the Free Maternal Health Care which is supposed to be disbursed as reimbursement to County governments.