The Budget and Appropriations Committee led by the Chairperson Hon. Ndindi Nyoro (Kiharu), has met today to consider Senate Amendments to the Division of Revenue (Amendment) Bill, 2024.

The Division of Revenue (Amendment) Bill (National Assembly Bills No. 38 of 2024), seeks to amend the Division of Revenue Act, 2024, to revise the sharing of the revenue raised nationally between the National and County Governments, to reflect the downward revision of projected ordinary revenue collection for the Financial Year 2024/25.

The shortfall as proposed in the Bill amounts to Kshs. 346 billion, occassioned by the failure to enact the Finance Bill, 2024 into law.

The sharing of the shortfall of the Kshs. 346 billion between the two levels of government is indicated as Kshs. 325.88 billion to be borne by the National Government and Kshs. 20.12 billion be reduced from the County Equitable Share.

The new allocation for the National Government was proposed to be Kshs. 2.214 trillion, down from Kshs. 2.540 trillion, while that of the County Government was adjusted to Kshs. 380 billion, down from Kshs. 400.117 billion.

In the Bill, it was observed that the Kshs. 380 billion as equitable share to Counties was 24.2 percent of the last audited and approved revenues of the government for the Financial Year 2020/21, hence meets the constitutional threshold of fifteen percent as per article 203(2).

During the meeting, Hon. Nyoro noted that this Bill is being considered after the Supplementary Estimates I were passed and signed into law, hence the need to consider our fiscal status.

“We have already passed the Supplementary 1 with the Equalization Fund as it was then and therefore, whatever we discuss today has to be in that context.” Said the Budget Committee Chair.

Members also discussed the implications the Senate Amendments to the Division of Revenue Bill would have on Supplementary II Estimates.

The Committee shall have two options; to pass the Bill as amended by the Senate, or to reject the amendments and have the Bill referred to a Mediation Committee under article 113 of the Constitution.

The Committee is scheduled to Table the report on Tuesday next week in the National Assembly.