County Governments will get Ksh. 370 Billion in this year’s budget, an increase from Sh353.2 Billion they were allocated in the previous financial year.
The increment coming following a pledge by President Uhuru Kenyatta last year to the effect that the devolved units would receive additional funding to carry out their functions.
“Acknowledging the palace of devolution in our country, the county governments will receive Kshs. 370 Billion as equitable share representing 27.3 percent of the most recent audited and approved revenue raised nationally in line with article 203 (2) of the Constitution.” Treasury CS Ukur Yatani noted when he read the 2021/2022 budget statement.
In addition to this figure, Yatani disclosed that the county governments will receive Kshs.7.5 Billion as conditional allocation from the national government share of revenue and Kshs 32.3 billion from development partners. This brings the total for the financial 2021/2022 to Ksh. 409.9 billion.
“Indeed this marks a substantial increase compared to 353.2 Billion allocations in financial year 2020/2021. a clear testimony of the government’s commitment to supporting devolution.” He said
He further disclosed that in line with high court ruling of 2016 which directed that conditional and non-conditional grants to county governments should not be provided for under the Division of Revenue Act, the national treasury in consultation with other stakeholders is developing an appropriate legal instrument to be used to disburse additional Constitutional grants from the national government share of revenue as well as from proceeds of loans and grants to county governments.