Budget and Appropriations Committee Considers Senate Amendments to Division of Revenue Bill, 2024

The Budget and Appropriations Committee convened to deliberate on Senate Amendments to the Division of Revenue Bill, 2024, marking a pivotal moment in the fiscal planning process for the upcoming financial year.

The primary focus of the meeting was the Senate’s proposal to decrease the National Government’s share by Kshs. 24.84 billion while simultaneously increasing the equitable share allocated to County Governments by an equivalent amount. If ratified, this adjustment would elevate the County Governments’ equitable share for the fiscal year 2024/25 to Kshs. 415.95 billion, up from the initial allocation of Kshs. 391.1 billion.

The rationale behind the Senate’s proposed increase stems from several non-discretionary financial obligations, including housing levy deductions, augmented contributions to the National Social Security Fund (NSSF), and anticipated contributions to the Social Health Insurance Fund (SHIF) upon its rollout in July. Furthermore, the Senate contends that the augmented allocation will help mitigate wage drift and facilitate counties’ provision of matching funds for initiatives such as the County Aggregation and Industrial Parks and the Community Health Promoters’ program.

The Division of Revenue Bill (National Assembly Bill No. 14 of 2024) was initially considered and endorsed by the National Assembly on March 20, 2024. Following its transmission to the Senate on March 21, 2024, for concurrence, the Senate subsequently passed the Bill with amendments on Thursday, May 2, 2024, before referring it back to the National Assembly for further consideration.

A Special Sitting of the National Assembly has been scheduled for Monday, May 13, 2024, at 2:30 pm, during which the Budget and Appropriations Committee will present its report on the Senate Amendments to the Bill. This session is designated as urgent business, underscoring the significance of the matter at hand.

Subsequently, the House will conduct a vote to either accept or reject the proposed amendments. In the event of rejection, the Bill will proceed to mediation, emphasizing the commitment to thorough deliberation and consensus-building in the legislative process.

As the nation awaits the outcome of the forthcoming deliberations, the Budget and Appropriations Committee’s engagement underscores the imperative of equitable resource allocation and prudent fiscal management in advancing national development objectives.