President Uhuru Kenyatta has signed into law the 2020/21 County Revenue Allocation Bill. The move signals an end to the cash crunch in Counties and allows the funds to be disbursed to the devolved units.
The Bill, which was signed into law by the President at State House on Thursday morning after being presented by Senate Speaker Ken Lusaka, allocates Kshs 369.87 billion for the current financial year to the Counties. The allocation includes an equitable share of Kshs 316.5 billion and grants from the government of Kshs 13.73 billion. Kshs 9.43 billion is from the road maintenance and fuel levy, while loans and grants allocation is Kshs 30.2 billion.
The conditional allocation will be utilized to cater for services that include leasing of medical equipment and rehabilitation of youth polytechnics in the Counties.
The funds allocation impasse had stretched services at Counties, with Senators failing ten times to approve the new Third Basis for Revenue allocation formula. However, after concerted efforts, a formula was finally agreed last month, with Kshs 370 to be allocated to Counties from the 2021/22 financial year, ending a shut down in the Counties.