SEN County Governments Additional Allocations (No. 2) Bill County Governments Additional Allocations ( No. 2) Bill

## SPECIAL ISSUE ## Kenya Gazette Supplement No. 163 (Senate Bills No. 4) <!-- image --> ## REPUBLIC OF KENYA ------- ## KENYA GAZETTE SUPPLEMENT ## SENATE BILLS, 2022 ## NAIROBI, 26th October, 2022 ## CONTENT Bill for Introduction into the Senate- The County Governments Additional Allocations (No. 2) Bill, 2022 ........... PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTER, NAIROBI PAGE 55 ## THE COUNTY GOVERNMENTS ADDITIONAL ALLOCATIONS (NO. 2) BILL, 2022 ARRANGEMENTS OF CLAUSES ## Clause - 1 - Short title. - 2 - Interpretation. - 3 - Object. - 4 - Additional allocations to county governments. - 5 - Conditional allocations to county governments. - 6 - Equalization Fund. - 7 - Report on actual transfers. - 8 - Books of accounts to reflect national government transfers. - 9 - Reporting. ## THE COUNTY GOVERNMENTS ADDITIONAL ALLOCATIONS (NO. 2) BILL, 2022 ## A Bill for - AN ACT of Parliament to provide for the additional allocations to county governments for the 2022/2023 financial year; the responsibilities of National Government and county governments pursuant to such allocation; and for connected purposes ENACTED by Parliament of Kenya, as follows- 1. This Act may be cited as the County Governments Additional Allocations (No. 2) Act, 2022. 2. In this Act - 'Cabinet Secretary' means the Cabinet Secretary responsible for matters relating to finance; 'additional allocations' means additional resources allocated to county governments from the National Government's share of revenue or in the form of loans and grants from development partners; and 'county executive committee member' means the county executive committee member in charge of matters relating to finance. 3. The object of this Act is to- 2. (a) provide, pursuant to Article 202(2) of the Constitution, for additional allocations for the financial year 2022/23; 3. (b) provide for additional allocations from proceeds of loans and grants from development partners; and 4. (c) facilitate the transfer of conditional and unconditional allocations made to counties under this Act from the Consolidated Fund to the respective County Revenue Funds and special purpose accounts. 4. (1) Additional allocations shall be funds agreed upon by the National Assembly and the Senate during the consideration of the Budget Policy Statement and shall comprise of- Short title. Interpretation. Object. Additional allocations to county governments. - (a) additional allocations from the National Government and development partners required for functions transferred to counties from the National Government pursuant to Article 187 of the Constitution; - (b) additional allocations provided for under Article 202(2) of the Constitution; and - (c) additional allocations in the form of loans and grants from development partners. (2) Additional funds allocated under this section shall be included in the respective county governments' appropriation bills. (3) The National Treasury shall facilitate any agreement between a county government and a development partner and shall table the agreements in the National Assembly and the Senate before inclusion in the Budget Policy Statement. 5. (1) Conditional allocations to each county government from the National Government share of revenue for the financial year 2022/23 shall be as set out in Column D of the First Schedule, comprising - - (a) conditional allocations for the construction of county headquarters as set out in Column B of the First Schedule; and - (b) conditional allocations for the leasing of medical equipment as set out in Column C of the First Schedule. (2) Conditional allocations financed by proceeds of loans or grants from development partners to each county government for the financial year 2022/23 shall be as set out in Column M of the Second Schedule comprising of - - (a) conditional allocations financed by a World Bank credit to finance Agricultural and Rural Inclusive Growth Project (NARIGP) as set out in Column B of the Second Schedule; - (b) conditional allocation financed by a World Bank loan to finance the Kenya Climate Smart Agriculture Project (KCSAP) as set out in Column C of the Second Schedule; Conditional allocations to county governments. - (c) conditional allocations from EU grant to finance Instruments for Devolution Advice and Support (IDEAS) program as set out in Column D of the Second Schedule; - (d) conditional allocations from a World Bank credit to finance Water and Sanitation Development Project (WSDP) as set out in Column E of the Second Schedule; - (e) conditional allocations from a grant by DANIDA to finance Universal Healthcare in Devolved System Program as set out in Column F of the Second Schedule; - (f) conditional allocations from a World Bank credit to finance Locally-Led Climate Action Program, (FLLoCA) for County Climate Institutional Support (CCIS) as set out in Column G of the Second Schedule. - (g) conditional allocations financed by a loan from Government of Sweden to finance Agriculture Sector Development Support Programme II (ASDSP II) as set out in Column H of the Second Schedule; - (h) conditional allocations financed by both loan and grant from the German Development Bank (KfW) to finance Drought Resilience Programme in Northern Kenya (DRPNK) as set out in Column I of the Second Schedule; - (i) conditional allocations financed by a credit from World Bank to finance Emergency Locust Response Project (ELRP) as set out in Column J of the Second Schedule; - (j) conditional allocations financed by a loan from the World Bank to finance Kenya Informal Settlement Improvement Project (KISIP II) as set out in Column K of the Second Schedule; and - (k) conditional allocations financed by a grant from the World Bank to finance Locally- Led Climate Program (FLLoCA) for County Climate Resilience Investment (CCRI) grant as set out in Column L. (3) Conditional allocations under subsection 2(k) shall be allocated among county governments on the basis of a criteria to be determined as follows - - (a) the accounting officer responsible for the conditional allocation shall in each eligible county government carry out or cause to be carried out, in accordance with the intergovernmental agreement between the National Government and each eligible county government, an assessment to determine the eligible county governments' performance score for purposes of determining the Performance allocation for the financial year 2022/2023; - (b) the allocation to the eligible county governments shall be on the basis of the criteria comprising the performance score determined under paragraph (a) and the Revenue Sharing formula approved by Parliament in accordance with Article 217 of the Constitution; and - (c) the Cabinet Secretary shall publish in the Kenya Gazette the allocations determined in terms of paragraph (b). (4) Each county government's allocation under subsection (1)(a) shall - - (a) be transferred to the respective County Revenue Fund, in accordance with a payment schedule published in the Gazette by the Cabinet Secretary in accordance with section 17 of the Public Finance Management Act; and - (b) only be accessed by each county government after meeting conditions set by the Cabinet Secretary responsible for that function at the beginning of the financial year. (5) A county governments' allocation under subsection (2) shall be transferred to the respective County Revenue Fund in accordance with a payment schedule No. 18 of 2012. published in the Kenya Gazette by the Cabinet Secretary in accordance with section 17 of the Public Finance Management Act. (6) The county governments' allocations under subsections (1) and (2) shall, subject to subsection (7), be included in the budget estimates of the National Government and shall be submitted to Parliament for approval. (7) Allocations shall not be included in the budget estimates under subsection (5) unless - - (a) the National Government and the respective county governments have entered into an intergovernmental agreement in accordance with this Act; or - (b) in the case of a loan or grant by a development partner, the Cabinet Secretary and the responsible development partner have agreed in writing that the funds shall be transferred to the county government. 6. Additional allocations to the respective county government from the Equalization Fund for the financial year 2022/23 shall be as set out in the Third Schedule. 7. The Cabinet Secretary shall publish, by the 15th day of each subsequent month, a monthly report on actual transfers of all additional allocations to county governments disbursed pursuant to this Act. 8. Each county treasury shall reflect all transfers of conditional allocations by the National Government to the respective county government in its books of accounts. 9. A county treasury shall, as part of its consolidated quarterly and annual reports required under the Public Finance Management Act, report on- - (a) 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 the Public Sector Accounting Standards Board or in the absence of a format prescribed by the Board, in the format prescribed by the National Treasury; Equalization Fund. Report on actual transfers. Books of accounts to reflect national government transfers. Reporting. No. 18 of 2012. - (b) the actual expenditure by the county government of the allocations made under section 5(1) and (2); - (c) the extent of compliance with the provisions of this Act and with the conditions of allocations as set out in the intergovernmental agreement entered into by the national government, the development partner and the county government; - (d) an explanation of any material problems in the expenditure of any allocations made under this Act or compliance with any conditions of allocations set out in an intergovernmental agreement; and - (e) any other information that may be required by the relevant intergovernmental agreement. FIRST SCHEDULE (s. 5(1)) ## Conditional allocations to County Governments from National Government Revenue in Financial Year 2022/23 (Kenya Shillings) | Additional allocations to County Governments from National Government Revenue in Financial Year 2022/2023 (Kenya Shillings) | Additional allocations to County Governments from National Government Revenue in Financial Year 2022/2023 (Kenya Shillings) | Additional allocations to County Governments from National Government Revenue in Financial Year 2022/2023 (Kenya Shillings) | Additional allocations to County Governments from National Government Revenue in Financial Year 2022/2023 (Kenya Shillings) | Additional allocations to County Governments from National Government Revenue in Financial Year 2022/2023 (Kenya Shillings) | Additional allocations to County Governments from National Government Revenue in Financial Year 2022/2023 (Kenya Shillings) | |-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------| | S/N. | County | FY 2021/22 | FY 2022/23 | FY 2022/23 | FY 2022/23 | | | | Total Conditional Grants from the National Government Revenue | Supplementfor Construction of County Headquarters | Conditional Grant-Leasing of Medical Equipment | Total Conditional Grants from the National Government Revenue | | | | Column A | Column B | Column C | Column D | | 1 | Baringo | 153,297,872 | - | 110,638,298 | 110,638,298 | | 2 | Bomet | 153,297,872 | - | 110,638,298 | 110,638,298 | | 3 | Bungoma | 153,297,872 | - | 110,638,298 | 110,638,298 | | 4 | Busia | 153,297,872 | - | 110,638,298 | 110,638,298 | | 5 | Elgeyo/Marakwet | 153,297,872 | - | 110,638,298 | 110,638,298 | | 6 | Embu | 153,297,872 | - | 110,638,298 | 110,638,298 | | 7 | Garissa | 153,297,872 | - | 110,638,298 | 110,638,298 | | 8 | Homa Bay | 153,297,872 | - | 110,638,298 | 110,638,298 | | 9 | Isiolo | 221,297,872 | 102,000,000 | 110,638,298 | 212,638,298 | | 10 | Kajiado | 153,297,872 | - | 110,638,298 | 110,638,298 | | 11 | Kakamega | 153,297,872 | - | 110,638,298 | 110,638,298 | | 12 | Kericho | 153,297,872 | - | 110,638,298 | 110,638,298 | | 13 | Kiambu | 153,297,872 | - | 110,638,298 | 110,638,298 | | 14 | Kilifi | 153,297,872 | - | 110,638,298 | 110,638,298 | | 15 | Kirinyanga | 153,297,872 | - | 110,638,298 | 110,638,298 | | 16 | Kisii | 153,297,872 | - | 110,638,298 | 110,638,298 | | 17 | Kisumu | 153,297,872 | - | 110,638,298 | 110,638,298 | | 18 | Kitui | 153,297,872 | - | 110,638,298 | 110,638,298 | | 19 | Kwale | 153,297,872 | - | 110,638,298 | 110,638,298 | | 20 | Laikipia | 153,297,872 | - | 110,638,298 | 110,638,298 | | 21 | Lamu | 191,297,872 | 24,000,000 | 110,638,298 | 134,638,298 | | 22 | Machakos | 153,297,872 | - | 110,638,298 | 110,638,298 | | 23 | Makueni | 153,297,872 | - | 110,638,298 | 110,638,298 | | 24 | Mandera | 153,297,872 | - | 110,638,298 | 110,638,298 | | 25 | Marsabit | 153,297,872 | - | 110,638,298 | 110,638,298 | | Additional allocations to County Governments from National Government Revenue in Financial Year 2022/2023 (Kenya Shillings) | Additional allocations to County Governments from National Government Revenue in Financial Year 2022/2023 (Kenya Shillings) | Additional allocations to County Governments from National Government Revenue in Financial Year 2022/2023 (Kenya Shillings) | Additional allocations to County Governments from National Government Revenue in Financial Year 2022/2023 (Kenya Shillings) | Additional allocations to County Governments from National Government Revenue in Financial Year 2022/2023 (Kenya Shillings) | Additional allocations to County Governments from National Government Revenue in Financial Year 2022/2023 (Kenya Shillings) | |-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------| | S/N. | County | FY 2021/22 | FY 2022/23 | FY 2022/23 | FY 2022/23 | | | | Total Conditional Grants from the National Government Revenue | Supplementfor Construction of County Headquarters | Conditional Grant-Leasing of Medical Equipment | Total Conditional Grants from the National Government Revenue | | | | Column A | Column B | Column C | Column D | | 26 | Meru | 153,297,872 | - | 110,638,298 | 110,638,298 | | 26 | Meru | 153,297,872 | - | 110,638,298 | 110,638,298 | | 27 | Migori | 153,297,872 | - | 110,638,298 | 110,638,298 | | 28 | Mombasa | 153,297,872 | - | 110,638,298 | 110,638,298 | | 29 | Murang'a | 153,297,872 | - | 110,638,298 | 110,638,298 | | 30 | Nairobi | 153,297,872 | - | 110,638,298 | 110,638,298 | | 31 | Nakuru | 153,297,872 | - | 110,638,298 | 110,638,298 | | 32 | Nandi | 153,297,872 | - | 110,638,298 | 110,638,298 | | 33 | Narok | 153,297,872 | - | 110,638,298 | 110,638,298 | | 34 | Nyamira | 153,297,872 | - | 110,638,298 | 110,638,298 | | 35 | Nyandarua | 228,297,872 | 121,000,000 | 110,638,298 | 231,638,298 | | 36 | Nyeri | 153,297,872 | - | 110,638,298 | 110,638,298 | | 37 | Samburu | 153,297,872 | - | 110,638,298 | 110,638,298 | | 38 | Siaya | 153,297,872 | - | 110,638,298 | 110,638,298 | | 39 | Taita Taveta | 153,297,872 | - | 110,638,298 | 110,638,298 | | 40 | Tana River | 228,297,872 | 104,000,000 | 110,638,298 | 214,638,298 | | 41 | TharakaNithi | 229,297,872 | 103,000,000 | 110,638,298 | 213,638,298 | | 42 | Trans Nzoia | 153,297,872 | - | 110,638,298 | 110,638,298 | | 43 | Turkana | 153,297,872 | - | 110,638,298 | 110,638,298 | | 44 | Uasin Gishu | 153,297,872 | - | 110,638,298 | 110,638,298 | | 45 | Vihiga | 153,297,872 | - | 110,638,298 | 110,638,298 | | 46 | Wajir | 153,297,872 | - | 110,638,298 | 110,638,298 | | 47 | West Pokot | 153,297,872 | - | 110,638,298 | 110,638,298 | | | GRAND TOTAL | 7,537,000,000 | 454,000,000 | 5,200,000,000 | 5,654,000,000 | | 20 | 19 | 18 | 17 | 16 | 15 | 14 | 13 | 12 | 11 | 10 | 9 | | S/N | | |-------------|---------------|-------------|-------------|-------------|-------------|---------------|-------------|-------------|-------------|-------------|-------------|----------|---------------------------------------------------------------------------------------------------------------------------|------------| | Laikipia | Kwale | Kitui | Kisumu | Kisii | Kirinyaga | Kilifi | Kiambu | Kericho | Kakamega | Kajiado | Isiolo | | County | | | 594,808,504 | 1,084,696,427 | 505,225,111 | 769,632,733 | 575,643,577 | 573,638,600 | 2,154,008,617 | 589,239,254 | 569,054,323 | 691,090,920 | 576,204,540 | 592,196,554 | Column A | Total Loans and Grants | FY 2021/22 | | - | 129,364,832 | 153,298,172 | - | 131,476,562 | 148,043,801 | 219,997,606 | 400,318,542 | - | - | - | - | Column B | IDA (World Bank) credit (National Agricultural and Rural Inclusive Growth Project (NARIGP) | | | 66,193,250 | - | - | 70,007,432 | - | - | - | - | 72,680,579 | 99,110,439 | 75,231,220 | 59,773,034 | Column C | IDA (World Bank) - Kenya Climate Smart Agriculture Project (KCSAP) | | | - | - | - | 15,626,168 | - | - | - | - | - | - | - | - | Column D | EU Grant (Instruments for Devolution Advice and Support IDEAS) | | | - | 1,150,000,000 | - | - | - | - | 2,000,000,000 | - | - | - | - | - | Column E | IDA (World Bank) Credit: Water & Sanitation Development Project (WSDP) | | | 8,804,400 | 16,408,200 | 18,609,300 | 14,407,200 | 16,408,200 | 8,937,800 | 22,011,000 | 19,876,600 | 11,339,000 | 21,944,300 | 13,540,100 | 8,937,800 | Column F | DANIDA Grant - Primary Health Care in Devolved Context | FY | | 11,000,000 | 11,000,000 | 11,000,000 | 11,000,000 | 11,000,000 | 11,000,000 | 11,000,000 | 11,000,000 | 11,000,000 | 11,000,000 | 11,000,000 | 11,000,000 | Column G | IDA (World-Bank) Credit (Financing Locally-led Climate Action (FLLoCA) Program, County | | | 14,580,064 | 16,384,932 | 17,077,037 | 17,503,544 | 15,840,849 | 15,419,509 | 16,633,495 | 17,814,189 | 16,995,122 | 16,691,828 | 15,549,570 | 15,458,346 | Column H | Climate Institutional Support (CCIS) Grant (Level 1) Sweden- Agricultural Sector Development Support Programme (ASDSP) II | 2022/23 | | - | - | - | - | - | - | - | - | - | - | - | - | Column I | German Development Bank (KfW)- Drought Resilience Programme in Northern Kenya (DRPNK) | | | - | - | 70,223,000 | - | - | - | - | - | - | - | - | 84,469,550 | Column J | World Bank - Emergency Locust Response Project (ELRP) | | | - | - | - | 278,640,055 | - | - | 200,000,000 | 42,456,908 | - | - | - | - | Column K | World Bank - Kenya Informal Settlement Improvement Project(KISIP II) | | | - | - | - | - | - | - | - | - | - | - | - | - | Column L | IDA (World bank) Credit(Financing Locally-Led Climate Action Program, FLLoCA) | | | 100,577,714 | 1,323,157,964 | 270,207,509 | 407,184,399 | 174,725,611 | 183,401,110 | 2,469,642,101 | 491,466,239 | 112,014,701 | 148,746,567 | 115,320,890 | 179,638,730 | Column M | Total Loans and Grants | | The County Governments Additional Allocations (No. 2) Bill, 2022 70 | No. | COUNTY | FY 2021/2022 | FY2022/23 | TOTAL | |-------|-------------|------------------|------------------|----------------| | 31 | Trans Nzoia | 4,978,023.58 | 5,155,369.20 | 10,133,393 | | 32 | Turkana | 761,584,245.26 | 788,716,224.55 | 1,550,300,470 | | 33 | Wajir | 486,048,672.49 | 503,364,501.43 | 989,413,174 | | 34 | West Pokot | 680,106,212.55 | 704,335,479.10 | 1,384,441,692 | | | Total | 6,620,557,910.01 | 6,856,419,984.67 | 13,476,977,895 | ## MEMORANDUM OF OBJECTS AND REASONS The principal object of this Bill is to make provision for the transfer of conditional allocations from national governments share of revenue and from development partners to the County Governments for the financial year 2022/23. Clause 1 of the Bill provides for the short title while clause 2 defines the various terms used in the Bill. - Clause 3 of the Bill contains the object of the Bill which is to provide for the allocation of conditional grants to county governments for the financial year 2022/23; and to provide for the transfer of these conditional allocations from the Consolidated Fund to the respective County Revenue Fund. Clause 4 of the Bill provides for conditional allocations to be made to county governments. - Clause 5 of the Bill provides for the specific conditional allocations from the National Government and development partners to the county governments. - Clause 6 of the Bill provides for the transfer of funds from the Equalization Fund. - Clause 7 of the Bill provides for reports on actual transfers . - Clause 8 of the Bill provides for county government books of accounts to reflect National Government transfers. Clause 9 provides for reporting. Dated the 19th October, 2022. ALI IBRAHIM ROBA, Chairperson, Standing Committee on Finance and Budget.