Finance Bill 2024 Withdrawal: Parliament Receives Bill Cutting County Allocations by KSh 20.12B
The Division of Revenue (Amendment) Bill 2024 has been introduced in parliament.
This bill aims to revise the Division of Revenue Bill 2024 by adjusting the equitable share allocated to county governments for the Financial Year 2024/25.
The Finance Bill 2024, which was withdrawn after public outcry in major Kenyan cities, was initially projected to generate KSh 346 billion in revenue.
With the bill’s withdrawal, the government’s revenue forecast for FY 2024/25 has decreased from KSh 2.9 trillion to KSh 2.6 trillion.
This revenue shortfall has led to necessary budget adjustments across various government branches including the Executive, Legislature, Judiciary, and constitutional commissions for the fiscal year 2024/25.
The Division of Revenue (Amendment) Bill 2024 suggests cutting the equitable share for county governments by KSh 20.12 billion, which is 5.81% of the total revenue shortfall.
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“To address this financing gap and ensure the National Government can allocate resources to critical areas, the Bill proposes reducing the county governments’ equitable share by KSh 20.12 billion for FY 2024/25. This reduction constitutes 5.81% of the projected revenue shortfall,” the National Assembly clarified on X.
Clause 4 of the Bill, received in parliament on July 25, updates the Division of Revenue Act’s schedule, decreasing the equitable share for county governments from KSh 400.12 billion to KSh 380 billion.
In related developments, the National Treasury has presented Supplementary Budget 1 for parliamentary approval.
This budget includes various cuts as part of the government’s austerity measures following the withdrawal of the Finance Bill 2024.
Significantly, the State House’s budget for FY 2024/25 has been reduced from KSh 9.5 billion to KSh 4.3 billion, a cut of KSh 5.2 billion, while the Executive Office of the President’s budget has been trimmed by KSh 1.8 billion, from KSh 5.4 billion to KSh 3.6 billion, according to the supplementary estimates.
Finance Bill 2024 Withdrawal: Parliament Receives Bill Cutting County Allocations by KSh 20.12B
