Senators approve Sh13bn Equalisation Fund Bill
Commission on Revenue Allocation Vice-Chairperson Koitamet Olekina and Commissioner Isabel Waiyaki before the Senate’s Finance and Budget committee to respond to queries on the Equalisation Fund Appropriation Bill 2023 at County Hall, Nairobi on March 29, 2023.
Marginalised counties are now a step closer to receiving Sh13.89 billion from the Equalisation Fund after senators approved the appropriation of the money despite protests over the timing of the bill.
A total of 32 senators—24 votes are required—voted to pass the Equalisation Fund Appropriations Bill, 2023 unlocking the cash for the financial year ending June 2023. It will be returned to the National Assembly for concurrence before it is forwarded to President William Ruto for assent.
The lawmakers had raised concerns over the criteria used by the Commission on Revenue Allocation (CRA) to identify beneficiaries of the fund, describing their selection as discriminatory and a mockery to some counties which were allocated “peanuts”.
The lawmakers opposed to the bill also questioned the timeliness of the Bill that seeks to appropriate the funds barely two months to the end of the financial year.
However, Mandera Senator Ali Roba allayed fears over the short time remaining, saying once the funds are appropriated, they will not lapse at the end of the financial year.
“The voting is now complete and the results for the Equalisation Fund Appropriation Bill are in. The ayes are 32, nays two and abstention zero, so the ayes have it,” announced Senate Speaker Amason Kingi.
Some 1,424 marginalised regions in 34 counties are set to benefit from the Sh13.89 billion.
The Equalisation Fund is provided for under Article 204 of the Constitution to be used in the provision of basic services including water and health, and roads and other critical infrastructure. It further provides that 0.5 percent of all revenue collected by the national government be allocated to the fund.
Since its establishment, the fund’s entitlement stands at Sh54.03 billion but only Sh26.29 billion has been allocated and Sh12.4 billion disbursed.
According to the 2023 Bill, Turkana will get Sh1.53 billion, West Pokot (Sh1.37 billion), Narok (Sh1.03 billion), Mandera (1.01 billion), Wajir (Sh982.03 million), Samburu (Sh873.80 million), Marsabit (Sh631.65 million) and Tana River (Sh594.63 million).
Garissa will get Sh848.54 million, Baringo will get Sh800.28 million, Kilifi will get Sh726.13 million, Kajiado will receive Sh557.84 million, Kitui will get Sh534.59 million while Homa Bay will get Sh176.99 million.
Kwale will get Sh393.51 million, Laikipia will receive Sh160.45 million, Bungoma will get Sh79.05 million while Busia and Elgeyo-Marakwet will receive Sh24.18 million and Sh87.57 million, respectively. Bomet will get Sh25.84 million, Kericho will get Sh81.88 million while Kisumu will get Sh32.72 million.
Other counties that will benefit are Lamu (Sh77.48 million), Machakos (Sh17.38 million), Meru (Sh40.24 million), Murang’a (Sh7.63 million), Nakuru (Sh8.65 million), Siaya (Sh43 million), Taita-Taveta (Sh17.93 million), Tharaka-Nithi (Sh59.18 million) and Trans Nzoia (Sh10.05 million).
