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Senate Releases 55Bn To County Governments

The Senate has approved the Division of Revenue Bill allocations to the Counties and will start receiving their shareable revenue for the year starting July as soon as next week.

The 47 devolved units will get Sh55.5 billion in lump sum, which comprises their disbursement for July, August and September.

The disbursement schedule guides the Treasury in the release of funds and assists counties in the making of their budgets.

The disbursements for July, August and September should hit the counties’ Revenue Fund accounts within seven days in full,” said Mutula Kilonzo Jnr, who chairs the Senate Finance Committee.

Amendments to the County Allocation Revenue Act (Cara) for the current financial year demand that Treasury remits first quarter of shareable revenue to counties in arrears and within seven days of Senate approving the schedule.

The changes in the law were made in view of the delays in disbursements caused by a stalemate in the determination of the shareable revenue to counties, that saw governors contemplate total shutdown amid a biting cash crunch.

Approval of the Division of Revenue (DoR) Bill — which allocates funds equitably between the national and county governments- had been derailed following a dispute between the Senate and National Assembly over allocations.

The Senate later softened its stance and accepted a Sh316.5 billion allocation for counties proposed in the revised bill.

Parliament must first approve the DoR to pave the way for passage of the County Allocation of Revenue Bill that determines how much each unit gets.