President Ruto Assents to Division of Revenue (Amendment) Bill, 2024, Allocating Sh387 Billion to Counties

President William Ruto has signed the Division of Revenue (Amendment) Bill, 2024, into law, revising county governments’ equitable share for the 2024/25 financial year to Sh387 billion.

This marks a reduction from the initial Sh400 billion allocated in the Finance Bill, 2024, following a review prompted by a rejection of the earlier proposal.

The amendment revises the Division of Revenue Act, 2024, to reflect a downward adjustment in projected ordinary revenue collection for the financial year.

The National Assembly passed the Bill on August 7 and later amended by the Senate on October 3. However, the National Assembly rejected the Senate’s amendments on October 16, leading to the formation of an 18-member mediation committee.

Co-chaired by Kiharu MP Ndindi Nyoro and Mandera Senator Ali Roba, the committee resolved the impasse by agreeing to add Sh7 billion to the counties’ allocation.

Also Read: Kilifi leaders clash with MPs over Division of Revenue Amendment Bill 2024

This decision came after considering factors such as the rationale behind the reduction of Sh5 billion from the previous year’s allocation, a projected revenue shortfall of Sh346 billion, and historical revenue trends over the past decade.

The final allocation of Sh387 billion represents 24.67% of the most recent audited revenue, significantly exceeding the constitutional minimum threshold of 15%. The Act also allocates Sh2.2 trillion to the National Government.

The signing ceremony at State House was attended by key government officials, including Deputy President Kithure Kindiki, National Assembly Speaker Moses Wetang’ula, Senate Speaker Amason Kingi, Prime Cabinet Secretary Musalia Mudavadi, and Treasury Cabinet Secretary John Mbadi, alongside other leaders from both Houses.

President Ruto also assented to two additional Bills.

The Rating Bill, 2022 establishes a standard framework for property valuation and rating, providing counties with guidelines for assessing property values and imposing rates.

The Water (Amendment) Bill, 2024 Introduces provisions for Public-Private Partnerships to finance the development of water works by National Government Agencies.

The enactment of these laws is expected to bolster the financial autonomy of counties, enhance revenue administration, and support critical national development projects.