The National Treasury has disbursed Ksh52.2 billion to the county governments being their equitable share for the months of July and August 2020.
Yattani says that the National Assembly approved the division of revenue bill in April 2020 allocating Ksh363.9 billion out of which Ksh316.5 billion was the equitable share of the revenue. However, a stalemate in the Senate regarding the third criteria for revenue allocation halted the transfer of funds to county governments.
Therefore, as counties began the fiscal year 2020/21 they lacked funds for their normal operation. This affected service delivery, particularly health services, at a time when the country battled the COVID19 pandemic.
The Senate approved the third basis for revenue sharing among counties on October 6 and President Kenyatta assented the law on October 8. The new law allocated a sum of Ksh369.87 billion in the current fiscal year to Counties and includes Ksh316.5 billion of Equitable Share and Ksh13.73 billion in Government of Kenya Conditional Grants.
An additional Ksh9.43 billion will be from the Road Maintenance/Fuel Levy as well as Ksh30.2 billion in Loans and Grants. The conditional allocation will be utilized in provision of services such as leasing of medical equipment and rehabilitation of youth polytechnics across all the 47 Counties.