Nairobi to get largest share of county cash allocations in Senate proposals

Nairobi Governor Mike Sonko inspecting a Guard of Honour after his swearing-in ceremony. His county will receive largest revenue allocation. [File, Standard]

Nairobi County will receive the lion’s share of the Sh314 billion proposed for the 47 counties.

Five counties have been allocated more than Sh10 billion each in proposals tabled in the Senate yesterday morning.

The County Allocation of Revenue Bill 2018, tabled during a special sitting, sets aside Sh15.8 billion for Nairobi.

Lamu, Tharaka Nithi and Elgeyo Marakwet counties have been allocated the lowest share.

Kilifi dislodged Turkana with the second highest allocation of Sh10.8 billion.

Turkana is set to receive Sh10.7 billion, up from Sh10 billion.

Mandera will receive Sh10.1 billion - the third highest allocation in the last four years, placing it fifth after Kakamega that has secured Sh10.3 billion, up from Sh 9.7 billion in the current financial year.

Other counties set to receive more funds include Nakuru (Sh9.4 billion), Bungoma (Sh8.9 billion), Kiambu (Sh9.4 billion), Kitui (Sh8.7 billion), Wajir (Sh8.4 billion), Machakos (Sh8.3 billion), Mombasa (Sh8.2 billlion) and Meru (Sh8 billion)

Lamu County will get the least allocation at Sh3.5 billion, followed by Tharaka Nithi (Sh3.6 billion), Elgeyo Marakwet (Sh3.8 billion) and Isiolo (Sh3.9 billion).

The Bill proposes to allocate a total of Sh372.7 billion of resources raised nationally to the counties. This is equivalent to 39.8 per cent of most recent audited revenue, approved by the National Assembly.

Conditional allocation

The counties are also set to share a Sh59 billion conditional allocation meant for Level Five hospitals, construction of five county headquarters, development of youth polytechnics, compensation for county health facilities for forgone user fees revenue, medical leasing equipment scheme and roads maintenance.

In its first reading, the Bill will ensure that counties further get allocations from the loans and grants from development partners, totalling Sh33.3 billion.

Tharaka Nithi, Tana River, Nyandarua, Lamu and Isiolo will share Sh605 million for construction of county headquarters.

Each of the benefiting counties will get a Sh121 million supplement to build their headquarters.

In total, the Sh25.5 billion conditional allocation to counties from the national government revenue puts Kiambu and Kakamega at the top with more than Sh1 billion.

This proposal reflects an increase of Sh2.2 billion compared to the current budget. The finding will be intended for national strategic interventions to be implemented by counties.

Other counties include Nakuru (Sh909 million), Kisii (Sh917 million), Meru (Sh882 million), Machakos (Sh881 million), Mombasa (Sh868 million), Kisumu (Sh813 million), Nyeri (Sh783 million), Garissa (Sh776 million) and Embu (Sh667 million).

Each county will also receive Sh200 million under the medical equipment leasing scheme, totally Sh9.4 billion.

Eleven counties will receive Sh4.3 billion between them for the Level Five Hospitals. These are Kiambu (Sh539 million), Kakamega (Sh427 million), Kisii (Sh416 million), Nyeri (Sh408 million), Mombasa (Sh388 million), Machakos (Sh384 million), Meru (Sh374 million), Kisumu (Sh369 million), Nakuru (Sh374 million), Garissa (Sh345 million) and Embu (Sh301 million).

Counties will get Sh8.3 billion from the road maintenance fuel levy.

The Bill also sets restrictions on recurrent expenditure based on the second generation formula - a new sharing method agreed on by the Commission on Revenue Allocation and approved by Parliament.

The total ceilings for the executive recurrent expenditure for all counties has been capped at Sh26.8 billion while the county assembly will get Sh31 billion.

The Bill was sponsored by Finance and Budget Committee chairman Mohammed Mahamud and introduced following the enactment of the Division of Revenue Bill 2018, which shares revenue raised nationally between the national and county governments.

In the 2017-2018 financial year, the 47 counties will share a total allocation of Sh341 billion.

This consists of Sh302 billion of equitable share of national government revenue, Sh23 billion in conditional grants from the national government and a further Sh16.4 billion in conditional allocations from loans and grants from development partners.

The Sh302 billion is pegged on population at 45 per cent, basic equal share at 26 per cent, poverty levels at 18 per cent, land area at eight per cent, fiscal responsibility at two per cent and development at one per cent.

It also took into account the published census results for Garissa, Wajir and Mandera counties.

The Bill has been tabled days to the fifth Annual Devolution Conference set for Kakamega next week. The conference will bring together all sector partners to discuss achievements and hurdles faced.