Windfall as counties set to receive Sh32.8b monthly

The 47 county governments will receive up to Sh32.8 billion every month from the national government to fund their operations.

A disbursement schedule agreed upon by the National Treasury and the Senate Finance and Budget Committee and released yesterday commits the national government to release the billions to the county governments on the fifteenth day of every month starting this month.

According to the schedule, the 47 county governments will be receiving Sh32.8 billion in one month and Sh30.8 billion the following month for the next one year.

“The disbursement schedule indicates the total allocation to each individual county government and this conforms to the allocations provided in the County Allocation of Revenue Act, 2023.

The total allocation to the counties is Sh385.425 billion which is similar to the county equitable share allocation contained in the Division of Revenue Act, 2023,” reads part of the committee’s report.

This even as President William Ruto announced that the 47 county governments of Sh32 billion shareable revenue for counties for the month of July 2023, was to be disbursed to counties yesterday.

In the disbursement schedule seen by People Daily, Nairobi County will receive Sh1.7 billion, followed by Nakuru Sh1.15 billion, Turkana Sh1.11 billion, Kakamega Sh1.09 billion, Kiambu Sh1.03 billion and Kilifi Sh1.02 billion respectively for the month of July.

Mandera will get Sh988 million, Bungoma Sh944 million, Kitui Sh920 million, Meru Sh840 million, Wajir Sh837 million, while Machakos will receive Sh811 million as allocation for the month of July.

Under the planned disbursement schedule, Kisii will get Sh786 million, Narok will get Sh781 million, Kwale Sh729 million, Makueni will get Sh718 million, Uasin Gishu Sh716 million, Kisumu Sh710 million, Migori Sh709 million, Kajiado Sh705 million and Garissa Sh701 million respectively.

In the month of July Homa Bay County will receive Sh690 million, Mombasa Sh668 million, Marsabit Sh642 million, Trans Nzoia Sh637 million Busia Sh635 million, Muranga Sh635 million, Nandi Sh620 million while Siaya will get Sh617 million allocation.

Bomet will get Sh593 million, Tana River Sh577 million, Baringo Sh565 million, West Pokot Sh558 million, Nyeri Sh551 million, Nyandarua Sh502 million, Samburu Sh475 million, Kirinyaga Sh460 million and Nyamira Sh453 million.

The least counties include Lamu Sh275 million, Tharaka Nithi Sh372 million, Elgeyo Marakwet Sh408 million, Isiolo Sh415 million, Vihiga Sh447 million, Taita Taveta Sh428 million, Embu Sh454 million and Laikipia Sh455 million.

The schedule indicates the amount which each county is expected to receive on the fifteenth of every month in the course of the financial year.

Over this period, which runs from the July 15, 2023 to June 15, 2024, the monthly disbursement will be at an average of eight per cent on average of the total allocation.

In the first quarter of financial year 2023/24, county governments will receive Sh96.4 billion, second quarter Sh94.3 billion, third quarter Sh96.4 and fourth quarter Sh98.3 billion.

“The general observation is that the disbursement of the equitable share will follow a specific pattern, with counties benefiting cumulatively based on their individual approved allocation,” reads part of the committee report.

County governments have always accused the national government of delaying the disbursements by, at times several months hence paralysing service delivery to the citizenry.

According to the committee, the National Treasury should adhere to the cash disbursement schedules and make timely transfers to county governments for effective service delivery.

“The transfers have fallen behind the schedules on many occasions in previous financial years jeopardising operations in County governments,” reads part of the report.

Article 219 of the Constitution, states that a county’s share of revenue raised by the national government shall be transferred to the county without undue delay and without deduction; the challenge has been the adherence to the cash disbursement schedules.

The committee in its report, stated that there is a disconnect between the legal timelines for approval of cash disbursement schedules and the approval of the County Allocation of Revenue Bill.

The committee argued that this is because the County Allocation of Revenue Act informs the preparation of the cash disbursement schedule, and if the approval of CARB delays, the cash disbursement schedule cannot be prepared, submitted, approved and published in the gazette by May 30, in every year as required in section 17(7) of the PFM Act, 2012.

The amount is in an alternating basis where counties will receive Sh30.8 billion in one month and Sh32.8 billion in the following month.

The National Treasury has indicated that the cash disbursement schedule is pegged on performance of revenue raised at the National Government level.

“There is a need to amend the PFM Act, 2012 to align timelines for preparation and approval of cash disbursement schedules to the timelines provided for approval of the County Allocation of Revenue Bill.
The Committee charged that there is a need to amend the Public Finance Management (PFM) Act, to align timelines for preparation and approval of Cash disbursement schedules to the timelines provided for approval of the County Allocation of Revenue Bill.

National Treasury mostly fails to adhere to the approved Cash Disbursement Schedule and the actual disbursements to counties are not timely as required by the law.