This archive report was first published on 25 July 2019.
On July 25, 2019, the National Assembly passed the republished Division of Revenue Bill, allocating Sh316.6 billion to county governments as an equitable share, amidst a revenue crisis.
The move signals another round of mediation with the Senate, which had previously passed its own version of the bill, allocating Sh335 billion to counties.
The Supreme Court had ruled in 2014 that the Division of Revenue Bill was an ordinary bill, requiring consideration by both Houses of Parliament.
According to the Constitution, at least 15 percent of the latest audited revenue of the national government, as passed by the National Assembly, shall be allocated to counties.
With the bill now tabled at the Senate for concurrence, it will be submitted to the President for assent, following the Supreme Court's advisory.
Counties rely on the Division of Revenue Act to pass their respective finance bills, enabling them to collect revenue, and a delay in having the law in place could lead to a cash crunch.
Majority Leader Aden Duale emphasized the importance of equity in budget-making, stating, 'One of the key pillars in budget-making is the element of equity, which means dividing what you have with what you need. National debt and national interest come first with allocations to counties ranked number seven.'
