NAIROBI, Kenya Jun 13- The Government has set aside a total of Sh210 billion to be allocated to county governments.
National Treasury Secretary Henry Rotich said Sh190 billion will be shared on the equitable formula set out by the Commission on Revenue Allocation to go towards financing devolved functions such as health and agriculture.
“The equitable division of revenue takes into account the functions assigned to the counties as outlined in the Constitution and the factors listed in Article 203 of the Constitution,” Rotich said while delivering his maiden Budget statement to Parliament.
Rotich allocated Sh20 billion to be disbursed under the Equalization Fund which will be used to provide basic services including water, roads, health facilities and electricity to marginal areas in order to bring these services in the marginal areas to national standards in line with constitutional requirements.
He said the Treasury will support devolution through capacity building and investing in the human resource.
He said that this will aid the national government in creating one million new jobs every year.
The Transitional Authority has gazetted all the county functions to be performed by county governments, starting July 1.
“TA has also assessed the capacity of the county governments to provide the services assigned to them. He said.
“Those counties which will not be in a position to perform any of the transferred functions may request the national government to assist as their capacities are being developed.”
Senators moved to the Supreme Court on Thursday for interpretation on whether the president was right in assent to the Division on Revenue Bill arguing that this would set a precedent whereby the National Assembly would be rejecting any county related laws passed by the Senate.
Rotich said the Treasury will shortly be submitting to Parliament the financial regulations to ensure effective implementation of the Public Finance Management Act.
He said the budget making process, in both national and county governments, has been strengthened with the implementation of the new PFM law, enacted in 2012.
The law provides for transparent formulation of budgets and prudent management of public resources, in addition to enhancing the contribution of Parliament to public finance management.