The National Government has slashed counties funding, for the financial year 2021/2022, to KSh326.5 billion, down from the KSh370 billion pledged by President Uhuru Kenyatta.
The President made the promise after senators protested the KSh316.5 billion allocated in the current financial year as too little to the needs compared to the KSh335 billion baseline figure proposed by the Commission on Revenue Allocation (CRA). The pledge by President Uhuru Kenyatta would have raised their share by about 16.9%.
The National Treasury cites low revenue collection occasioned by the COVID-19 pandemic as the reason the government cannot meet its side of the bargain.
However, if the National Assembly approves the draft, the counties’ budget for the 2021/22 financial year, including conditional grants from the national government and loans from development partners will increase to KSh383.8 billion compared to KSh369.9 in the current financial year.