President Ruto Assents 2024 County Allocation of Revenue Bill

Nairobi, 

Friday, 6 December, 2024 

McCreadie Andias, 

President William Samoei Ruto has officially signed the County Allocation of Revenue Bill, 2024, a significant legislative move that will see a total of Sh387.4 billion distributed among the 47 counties in Kenya. 

The allocation is part of the ongoing efforts to ensure that the devolved units of government are adequately funded to deliver on their mandate to the citizens effectively.

The Bill, which the President assented to, allocates this sum in line with the existing revenue-sharing formula as outlined in Article 217 of the Constitution. 

This formula ensures that resources are divided equitably among the counties based on a number of factors, including population size, poverty levels, and fiscal needs. The allocation marks a crucial step in Kenya’s ongoing decentralization journey, aiming to improve service delivery at the grassroots level.

The Sh387.4 billion represents 24.7 percent of the most recent audited accounts of revenue, as approved by the National Assembly. Notably, this exceeds the constitutional minimum requirement of 15 percent of the national revenue that must be allocated to county governments, demonstrating a strong commitment by the government to support the success of devolution.

In his remarks after signing the Bill, President Ruto emphasized that this move would empower county governments to meet the needs of their citizens more effectively. “This allocation will ensure that the devolved units of government can continue to provide essential services, boost economic growth, and create opportunities for all Kenyans,” he stated.

This allocation will help fund various critical sectors, including health, education, infrastructure, and agriculture, directly impacting the lives of millions of Kenyans. 

With increased funding, county governments will be better positioned to address the local needs of their populations, such as improving healthcare facilities, building roads, enhancing water supply systems, and promoting local economic development.

The devolved government system, established in 2010, was designed to ensure that resources and decision-making power are distributed more equitably across the country, particularly benefiting marginalized and remote regions. 

As the country continues to recover from the economic impacts of the COVID-19 pandemic and other challenges, the funding provided by this Bill is expected to play a critical role in accelerating development and uplifting local communities.

However, while the allocation is a positive step forward, challenges remain in ensuring that these funds are used effectively and efficiently at the county level. There is ongoing scrutiny and debate about the management of funds, with calls for greater accountability and transparency from county governments. Ensuring that these resources are directed toward key developmental priorities will be crucial in achieving the desired outcomes of devolution.