The County Allocation of Revenue Bill, Senate Bill No. 16 of 2023

REPUBLICOFKENYA

PARLIAMENT

SENATEBILLS

(Bill No. 16 of 2023)

THE COUNTY ALLOCATION OF REVENUE BILL,2023

(A Bill published in the Kenya Gazette Supplement No. 52 of 27th April, 2023 and passed by the Senate, with amendments, on 15th June, 2023.)

Clause

• 1—Short title.
• 2—Interpretation.
• 3— Object.
• 4—Equitable allocation of county governments2 share of revenue.
• 5-Budget ceilingsforrecurrent expenditure.
• 6—Funding of transferredfunctions
• 7—Report on actual transfers.
• 8—BooksofaccountstoreflectNational Government transfers.
• 9—Financial misconduct.
• 10—Applicablerevenue-sharingformula.

FIRSTSCHEDULE:ALLOCATIONOFEACHCOUNTYGOVERNMENTS' EQUITABLESHAREOFREVENUERAISEDNATIONALLY, FINANCIALYEAR2023/2024.

SECONDSCHEDULE:

COUNTY GOVERNMENT BUDGET CEILINGS OF RECURRENTEXPENDITUREINFINANCIALYEAR 2023/2024.

THECOUNTYALLOCATIONOFREVENUEBILL,2023 ARRANGEMENTOFCLAUSES

Short title.

Interpretation.

No.16 of 2011.

Object.

Equitable allocationof county governments' shareofrevenue.

THECOUNTYALLOCATIONOFREVENUEBILL,2023

A Bill for

AN ACT of Parliament to provide for the equitable allocation of revenue raised nationally among the county governments for the 2023/2024 financial year; the responsibilities of National and county governments pursuant to such allocation; and for connected purposes.

ENACTEDbyParliamentofKenya,asfollows-

1. This Act may be cited as the County Allocation of Revenue Act, 2023. 2. 2.In this Act -—

"Cabinet Secretary"means the Cabinet Secretary for the time being responsibleformattersrelatingtofinance;and

"revenue" has the meaning assigned to it under section 2 of the

CommissiononRevenueAllocationAct.

• 3.The object of this Act is to-
• (a)provide,pursuant toArticle 218(1)(b) of the Constitution,for theallocationofanequitableshareofrevenueraised nationally among the county governments, in accordance with the resolution approved byParliament under Article 217of the Constitutionfor thefinancialyear2023/24;and
• (b)facilitatethetransferofallocationsmadetocountiesunderthis Act from the Consolidated Fund to the respective County RevenueFunds.

4. (1) Each county government's equitable share of revenue raised nationally,on thebasis of the revenue sharingformula approved by Parliament in accordancewithArticle217oftheConstitutioninrespect of thefinancialyear2023/24shallbeassetoutinColumnH oftheFirst Schedule.

No.18of2012.

Budget ceilings forrecurrent expenditure.

Funding of transferred functions.

Report on actual transfers.

Booksofaccounts toreflectNational Government transfers.

• (2) Each county government's allocation under subsection(1) shall betransferred totherespectiveCountyRevenueFund in accordance with a paymentschedule approved by theSenate andpublished in the gazettebytheCabinetSecretaryin accordancewithsection17of the PublicFinanceManagement Act.

5.Thebudget ceilings for recurrentexpenditure for county governmentsfor thefinancialyear2023/2024shallbe assetoutinthe SecondSchedule.

6.(1)Whereacountygovernment hastransferredfunctions to the National Government pursuant to Article 187 of the Constitution, the countyexecutiveinconsultationwiththeNationalGovernmentshall determine thecost of the transferredfunctions.

• (2)Therespectivecountyassemblyshall appropriatesuchmonies asmayberequiredforthetransferredfunctionsin accordancewiththe determinationmadeundersubsection(1)andtheallocationshallnotbe less than the amount appropriated by the county assembly in the precedingfinancial year.

(3)The monies appropriated under subsection (1),shall be transferredtotheNationalGovernment.

(4)ANationalGovernmententitytowhichacountygovernment functionhasbeentransferredshallsubmitaquarterlyreport'tothe Senate and therespectivecounty assemblyon thestatus ofthedischarge ofthedevolvedfunction.

• (5)TheAuditor-General shall,nolater than three months after the end of a financial year, prepare a special audit report on the financial andnon-financialperformanceofanentitytowhichacounty government function has been transferred.
• (6) A report prepared under subsection (5) shall be submitted to the Senateand therespectivecountyassembly.
• 7.TheCabinet Secretaryshallpublish a monthlyreport on actual transfers of all allocations tocountygovernments.

8. (1) Each county treasury shall reflect all transfers by the National Government to the countygovernments in its books of accounts.

No.18of2012.

Financial misconduct.

No.18of2012.

Applicable revenue-sharing formula.

(2)Theestimates ofrevenueofeachcountyshallseparatelyreflect thetotal equitablerevenueshareundersection4of thisActtransferred to the CountyRevenueFund.

(3)A county treasuryshall,aspart ofits consolidated quarterly and annual reports required under the Public Finance Management Act, report on actual transfers received by the county government from the National Government, up to the end of that quarter or year in the format prescribed by thePublicSectorAccountingStandardsBoard orin the absence of a format prescribed by the Board, in the format prescribed by theNational Treasury.

9.Despite theprovisions of any otherlaw,anyserious orpersistent non-compliancewith provisionsofthisActconstitutesanoffence under thePublicFinanceManagement Ac.

10.Forthe avoidanceof doubt theallocationof theequitableshare of revenue to county governments under section 4 of this Act shall be in accordancewiththethirddeterminationofthebasisofthedivision of revenue among counties approved byParliament pursuant toArticle 217(7) of the Constitution.

TheCountyAllocationofRevenueBill,2023

FIRSTSCHEDULE(s.4(1))

Allocation of Each County Governments' Equitable Share of Revenue Raised Nationally in Financial Year 2023/24

| 6,703,129,925 12,227,552,449 12,109,200,498 ,420,217,528 9,258,588,608 8,361,797,770 10,829,486,936 3,584,103,693 5,358,246,532 3,237,350,707 9,547,295,309 8,455,460,962 11,633,191,646 5 3.17 3.14 1.41 2.40 6,886,950,498 ,299,667,528 3.31 3.03 1.45 ,715,850,000 5,222,250,000 ,120,550,000 | Total Equitable Share | J=F+H 6,647,771,186 6,977,924,070 11,111,983,8 7,475,585,295 4,801,453,188 5,341,810,744 8,248,748,101 8,128,387,50 4,899,041,209 8,300,213,576 12,912,646,262 column | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | Allocation Ratio) *(Formula***) columnH Share**-0.5 | | 5,365,638,608 4,943,597,770 6,414,311,936 4,691,153,693 3,269,346,532 1,939,700,707 5,670,170,309 4,752,410,962 6,521,716,646 5 | ** (Equitable | 4,099,946,186 4,224,374,070 6,665,158,608 4,468,835,295 2,870,803,188 3,189,610,744 4,735,598,101 4,757,662,250 2,778,491,209 5,087,738,576 ,706,221,262 | | 4,012,879,925 7,511,702,449 2.87 | Allocation ratio | columnG 1.80 1.86 2.93 1.97 1.26 1.40 2.08 2.09 1.22 2.24 3.39 2,547,825,000 2,753,550,000 4,446,825,000 ,006,750,000 columnF | | 2.36 2.18 2.82 2.06 1.44 0.85 2.50 2.09 2,690,250,000 | Equitable Share | 1,930,650,000 2,152,200,000 3,513,150,000 3,370,725,000 2,120,550,000 3,212,475,000 5,206,425,000 5 | | 3,892,950,000 3,418,200,000 4,415,175,000 3,892,950,000 2,088,900,000 1,297,650,000 3,877,125,000 3,703,050,000 5,111,475,000 | Allocation ratio | 3 1.61 1.74 2.81 1.9 1.22 1.36 2.22 2.13 1.34 2.03 3.29 | | 1.34 2.46 2.16 2.79 3.23 | Share | columnE 6,691,099,118 10,659,435,192 7,172,162,009 4,606,532,480 5,125,243,762 7,927,212,254 805,353,300 ,710,388,265 7,954,768,229 12,389,412,168 | | 2.98 3.3 2.46 1.32 0.82 2.45 2.34 6,430,664,924 11,717,525,70 11,641,592,941 8,894,274,509 8,026,139,240 10,393,970,413 8,265,585,516 136,265,679 3,105,649,643 ,162,304,232 8,132,783,562 11,190,382,598 5 | Allocation ratio | 6,369,394,592 columnD 2.88 1.94 1.25 1.39 2.14 2.11 1.27 2.15 | | 3.17 3.15 1.40 2.40 2.17 2.81 2.23 1.39 0.84 2.48 2.20 3.02 | | columnC 2 1.81 3.35 | | Kiambu Kilifi Kirinyaga Kisii Kisumu Kitui Kwale Laikipia Lamu Machakos Makueni 5 忆 | | Busia Isiolo Kajiado Kakamega Kericho | | Mandera | | Baringo Bomet Embu Garissa HomaBay | | 3 4 18 19 20 2 23 | | + 8 9 | | | | 2 3 5 7 |

The County Allocation of Revenue Bill, 2023

| columnJ=F+H 7,560,398,412 9,892,625,172 8,341,446,108 7,861,523,820 7,473,786,703 20,072,059,115 13,593,424,693 ,305,294,033 ,196,276,899 5,334,198,486 5,905,976,056 6,485,331,051 5,594,312,489 ,263,019,462 5,040,427,430 6,790,702,542 4,378,234,821 7,499,822,440 13,143,946,933 8,426,072,635 5,267,026,885 9,853,656,422 6,573,866,403 385,424,616,067 column 96 2.57 2.16 2.04 1.94 5.21 173,848,412 5,873,075,172 4,954,896,108 4,332,548,820 ,703 4,324,611, 寸 1.84 2.18 1.91 1.90 5.33 2i 3,386,550,000 4,019,550,000 3,386,550,000 3,528,975,000 3,149,175,000 2.14 2.54 2.14 2.23 1.99 ,277,004,032 | Grand Total Equitable Share Total Equitable Share | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------| | | Allocation ratio (Equitable | | Allocation Ratio) *(Formula***) columnH 5,261,072,635 2,940,751,885 5,580,906,422 4,073,516,403 227,174,616,067 | (Equitable Share**-0.5 AllocationRatio) Share**-0.5 *(Formula***) 2023/2024 | | 12,112,084,115 8,355,349,693 4,630,869,033 5,176,726,899 2,928,798,486 3,468,926,056 779,256,051 3,283,862,489 4,367,044,462 2,919,877,430 3,863,077,542 2,415,934,821 4,619,672,440 7,874,221,933 3 3 | Allocation ratio | | column G 3.68 2.04 2.28 1.29 1.53 1.66 1.45 1.92 1.29 1.70 1.06 2.03 3.47 2.32 1.29 2.46 1.79 100 columnF | Equitable Share | | 158,250,000,000 7,959,975,000 5,238,075,000 2,674,425,000 4,019,550,000 2,405,400,000 2,437,050,000 ,706,075,000 2,310,450,000 2,895,975,000 2,120,550,000 2,927,625,000 1,962,300,000 2,880,150,000 5,269,725,000 3,165,000,000 2,326,275,000 4,272,750,000 2,500,350,000 | 0.5 (Allocation Ratio*) Allocation ratio | | columnE 5.03 3.31 1.69 2.54 1.52 1.54 1.46 1.83 1.34 1.85 1.24 1.82 3.33 2 2 1.58 100 | columnD Share | | 9,493,857,338 8,005,020,448 7,567,354,061 7,180,155,855 19,249,677,414 13,026,116,323 6,990,869,041 8,844,789,456 5,135,340,036 5,670,444,228 6,228,728,555 ,371,346,037 6,966,507,531 4,842,174,698 6,528,408,765 4,214,198,593 7,186,157,670 12,609,305,994 8,068,858,318 5,067,356,827 9,474,726,151 6,297,284,329 370,000,000,000 | Equitable Total 2022/2023 Allocation ratio | | columnC 1.97 2.57 2.16 2.05 1.94 5.20 3.52 1.89 2.39 1.39 1.53 1.68 1.45 1.88 1.31 1.76 1.14 1.94 3.41 2.18 1.37 2.56 100 | | | Nyandarua Taveta Tharaka-Nithi TransNzoia Uasin Gishu WestPokot Meru Migori Mombasa Nairobi Narok Nyamira Samburu Siaya Taita/ Turkana Vihiga Wajir | County | | Nakuru 5 2 28 2 30 3 32 3 5 30 3 3 39 4 2 $ 44 5$ 9 7 | S/No. |

The County Allocation of RevenueBill, 2023

| Grand TotalEquitable Share Share Allocation ratio | Total Equitable columnJ=F+H columnI | |-------------------------------------------------------------------------------|-----------------------------------------------------------------| | (Equitable Share**-0.5 AllocationRatio) (***o (Equitable 2023/2024 Allocation | AllocationRatio) *(Formula***) Share**-0.5 column columnG ratio | | EquitableShare 0.5 (Allocation Ratio*) Allocation | columnF columnE ratio | | Equitable Total Share 2022/2023 | columnD | | Allocation | columnC ratio | | County | | | S/No. | |

***Formula=

Indexi+0.08*RoadsIndexi+0.20*BasicShareIndex

SECONDSCHEDULE

| County Government Budget Ceilings on Recurrent Expenditure in Financial Year 2023/2024 (Figures in Kenya Shillings) | County Government Budget Ceilings on Recurrent Expenditure in Financial Year 2023/2024 (Figures in Kenya Shillings) | County Government Budget Ceilings on Recurrent Expenditure in Financial Year 2023/2024 (Figures in Kenya Shillings) | County Government Budget Ceilings on Recurrent Expenditure in Financial Year 2023/2024 (Figures in Kenya Shillings) | County Government Budget Ceilings on Recurrent Expenditure in Financial Year 2023/2024 (Figures in Kenya Shillings) | County Government Budget Ceilings on Recurrent Expenditure in Financial Year 2023/2024 (Figures in Kenya Shillings) | |-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------| | | | County Assembly Ceilings | County Assembly Ceilings | County Executive Ceilings | County Executive Ceilings | | No. | County | 2022/2023 | 2023/2024 | 2022/2023 | 2023/2024 | | 1 | Baringo | 712,229,059 | 828,250,102 | 607,049,529 | 628,507,168 | | 2 | Bomet | 621,143,848 | 826,903,256 | 588,023,141 | 525,981,274 | | 3 | Bungoma | 873,284,854 | 1,030,966,304 | 664,128,690 | 593,145,551 | | 4 | Busia | 765,019,229 | 890,557,352 | 626,075,916 | 565,353,297 | | 5 | Elgeyo/Marakwet | 592,408,337 | 688,567,522 | 568,996,754 | 540,143,817 | | 6 | Embu | 594,786,279 | 655,164,072 | 568,996,754 | 470,665,205 | | 7 | Garissa | 815,801,264 | 928,822,377 | 607,049,529 | 517,163,240 | | 8 | Homa Bay | 872,842,726 | 951,617,005 | 645,102,303 | 612,652,603 | | 9 | Isiolo | 451,013,358 | 539,314,722 | 492,255,576 | 384,717,582 | | 10 | Kajiado | 699,076,887 | 836,365,718 | 562,230,871 | 543,625,285 | | 11 | Kakamega | 1,097,653,117 | 1,400,821,103 | 721,207,850 | 702,976,417 | | 12 | Kericho | 708,995,621 | 828,466,755 | 607,049,529 | 574,171,331 | | 13 | Kiambu | 1,114,698,533 | 1,352,347,776 | 721,207,850 | 689,615,145 | | 14 | Kilifi | 779,167,171 | 942,241,093 | 626,075,916 | 552,882,777 | | 15 | Kirinyaga | 582,922,761 | 673,319,674 | 556,100,619 | 463,453,685 | | 16 | Kisii | 940,958,856 | 1,112,890,743 | 664,128,690 | 635,010,868 | | 17 | Kisumu | 718,886,210 | 827,121,358 | 626,075,916 | 548,429,020 | | 18 | Kitui | 862,047,458 | 1,042,409,957 | 645,102,303 | 787,239,883 | | 19 | Kwale | 617,790,583 | 667,712,409 | 568,996,754 | 436,816,651 | | 20 | Laikipia | 467,754,457 | 545,809,049 | 524,178,098 | 429,430,142 | | 21 | Lamu | 419,261,939 | 493,148,394 | 492,255,576 | 349,978,277 | | 22 | Machakos | 865,126,181 | 1,021,331,660 | 645,102,303 | 618,887,863 | | 23 | Makueni | 729,754,316 | 882,052,960 | 607,049,529 | 597,330,868 | | 24 | Mandera | 864,090,152 | 983,911,204 | 616,986,522 | 537,192,934 | | 25 | Marsabit | 678,317,733 | 714,092,325 | 568,996,754 | 477,791,217 | | 26 | Meru | 938,478,295 | 1,105,946,626 | 664,128,690 | 802,472,137 | | 27 | Migori | 857,185,385 | 1,003,508,709 | 645,102,303 | 609,089,597 | | 28 | Mombasa | 674,783,021 | 837,169,783 | 607,049,529 | 414,726,825 | | 29 | Murang'a | 753,378,653 | 830,709,033 | 626,075,916 | 633,050,405 | | 30 | Nairobi City | 1,446,962,393 | 1,924,120,608 | 816,339,786 | 640,180,465 | | 31 | Nakuru | 1,006,312,104 | 1,160,413,432 | 702,181,463 | 703,777,688 | | 32 | Nandi | 666,771,490 | 796,999,461 | 607,049,529 | 647,212,948 | | 33 | Narok | 734,655,062 | 911,202,495 | 607,049,529 | 545,667,285 |

TheCountyAllocationofRevenueBill,2023

| County Government Budget Ceilings on Recurrent Expenditure in Financial Year 2023/2024 (Figures in Kenya Shillings) | County Government Budget Ceilings on Recurrent Expenditure in Financial Year 2023/2024 (Figures in Kenya Shillings) | County Government Budget Ceilings on Recurrent Expenditure in Financial Year 2023/2024 (Figures in Kenya Shillings) | County Government Budget Ceilings on Recurrent Expenditure in Financial Year 2023/2024 (Figures in Kenya Shillings) | County Government Budget Ceilings on Recurrent Expenditure in Financial Year 2023/2024 (Figures in Kenya Shillings) | County Government Budget Ceilings on Recurrent Expenditure in Financial Year 2023/2024 (Figures in Kenya Shillings) | |-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------| | | | CountyAssemblyCeilings | CountyAssemblyCeilings | CountyExecutiveCeilings | CountyExecutiveCeilings | | No. | County | 2022/2023 | 2023/2024 | 2022/2023 | 2023/2024 | | 34 | Nyamira | 610,515,511 | 746,578,493 | 568,996,754 | 458,194,685 | | 35 | Nyandarua | 651,697,338 | 770,438,804 | 588,023,141 | 533,107,285 | | 36 | Nyeri | 692,693,761 | 776,126,610 | 607,049,529 | 605,347,631 | | 37 | Samburu | 517,964,444 | 593,254,286 | 533,708,983 | 482,789,720 | | 38 | Siaya | 683,152,880 | 775,678,151 | 607,049,529 | 540,322,777 | | 39 | Taita/Taveta | 620,545,692 | 681,840,554 | 568,996,754 | 439,488,905 | | 40 | Tana River | 582,990,790 | 677,653,973 | 537,074,233 | 436,641,663 | | 41 | Tharaka -Nithi | 434,745,770 | 517,563,626 | 524,178,098 | 445,463,668 | | 42 | Trans Nzoia | 643,357,859 | 685,259,476 | 588,023,141 | 427,107,865 | | 43 | Turkana | 818,680,328 | 966,834,859 | 607,049,529 | 526,961,505 | | 44 | Uasin Gishu | 703,027,730 | 796,524,510 | 607,049,529 | 474,407,171 | | 45 | Vihiga | 637,128,800 | 714,071,318 | 588,023,141 | 487,678,963 | | 46 | Wajir | 853,371,986 | 992,922,326 | 597,112,535 | 599,569,960 | | 47 | WestPokot | 603,044,748 | 683,634,469 | 568,996,754 | 589,135,145 | | | Total | 34,576,474,969 | 40,612,656,492 | 28,486,731,667 | 25,825,556,396 |

TheCountyAllocationofRevenueBill,2023

I certify that this printed impression is a true copy of the Bill as passed by the Senate on Thursday, 15thJune,2023.

ClerkoftheSenate

EndorsedforpresentationtotheNationalAssemblyinaccordancewiththeprovisionsofstanding order161oftheSenateStandingOrders.

SpeakerofheSenate