President William Ruto has announced a reorganization of the national budget that will see counties lose Sh20 billion in the current financial year. This decision comes after the withdrawal of the Finance Bill, 2024, necessitating adjustments to the previously planned allocations.
The announcement was made through a memorandum sent to Parliament, in which President Ruto stated his refusal to sign the County Allocation of Revenue Bill, 2024. The bill had initially stipulated an allocation of Sh400.1 billion to the devolved units. This rejection is in accordance with Article 115 (1) (b) of the Kenyan Constitution, which grants the President the power to return a bill to Parliament with specific recommendations.
“In exercise of the powers conferred on me by Article 115 (1) (b) of the Constitution, I decline to assent to the County Allocation of Revenue Bill, 2024, and refer the Bill for reconsideration by the Senate,” President Ruto said in his memorandum.
The President has recommended that the bill be amended by deleting the First Schedule and replacing it with a new schedule attached to his memorandum. This new schedule reflects the revised budgetary allocations, effectively reducing the total amount allocated to counties by Sh20 billion.
The decision has been met with mixed reactions from various stakeholders. County governments, which rely heavily on national government allocations to fund local development projects and provide essential services, have expressed concern over the potential impact of the budget cuts.
Governors from various counties have voiced their worries, stating that the reduction in funding could hinder their ability to execute key projects and deliver services to the citizens. They argue that the move contradicts the spirit of devolution, which aims to empower local governments and ensure equitable development across the country.
“We understand the need for fiscal adjustments, but reducing allocations to counties will directly affect service delivery and development projects that are critical to our citizens,” said a governor from a major county who preferred to remain anonymous. “We urge the Senate to carefully consider the President’s recommendations and find a solution that balances national fiscal responsibilities with the needs of the counties.”
On the other hand, proponents of the budget reorganization argue that the adjustments are necessary to ensure the country’s financial stability. They emphasize that the President’s decision is aimed at addressing pressing economic challenges and reallocating resources to areas that require immediate attention.
“As a country, we must make tough decisions to ensure our financial health. The President’s recommendations are part of broader efforts to manage our resources more effectively and address emerging priorities,” stated a senior official from the National Treasury.
The Senate is now tasked with reconsidering the County Allocation of Revenue Bill, 2024, in light of the President’s recommendations. The outcome of this legislative process will determine the final budgetary allocations for the counties in the current financial year.
As the debate continues, Kenyans across the country are watching closely, aware that the decisions made in the coming days will have a significant impact on the development and delivery of services at the county level.
