In a significant development for Kenya’s county governments, the National Assembly has passed the County Governments Additional Allocations Bill (National Assembly Bill No. 2 of 2025), unlocking billions of shillings in funding for counties for the 2024/2025 financial year. The Bill, passed on Friday, March 14, 2025, facilitates the transfer of both conditional and unconditional grants from the national government and development partners to county governments.
The additional funds, which supplement the allocations already provided through the Division of Revenue Act, include conditional grants earmarked for specific county projects, unconditional allocations from sources like court fines, and grants from international partners. The passage of the Bill promises to bolster the financial capacity of county governments, helping them address key development needs.
Among the key allocations in the Bill is funding for the Community Health Promoters (CHPs) initiative, which is vital to the successful implementation of the Universal Health Coverage (UHC) program. The Bill ensures stipends for healthcare workers involved in registering individuals for the Social Health Assistance (SHA) program, with Ksh1.759 billion allocated to cover salary arrears owed to county health workers. Hon. Phyllis Bartoo (Moiben) emphasized the importance of these allocations, particularly for the health promoters who are integral to the SHA rollout.
"The issue of the health promoters is critical. They are given additional responsibilities, but their monthly stipend of Ksh5,000 is not even enough to sustain them. They work hard but do not take home adequate compensation. If we are serious about making SHA functional, we need to ensure that funds are disbursed to the counties on time," Hon. Bartoo said.
The Bill also allocates revenue from court fines imposed on county violations to be shared with county governments as unconditional allocations. This measure is aimed at easing financial strains on local governments.
Supporting the Bill, Hon. Jematiah Sergon (Baringo County, UDA) praised the legislative move, stating that the funds will empower counties to fulfill obligations such as paying workers and funding key development projects. "This Bill will enable counties to meet their financial commitments, support essential services, and drive economic development," she said.
However, concerns about the delays in disbursement were raised by Hon. (Dr) Wilberforce Oundo (Funyula), who pointed out the potential consequences of such delays, especially as the financial year draws to a close. "We are only three months away from the end of the financial year, and some of these allocations might not be absorbed in time. This delay has cost counties billions of shillings in lost opportunities," Dr. Oundo remarked.
Another significant feature of the Bill is the County Aggregation and Industrial Parks (CAIPs) initiative, which will see Ksh105.3 million allocated to each of the 19 selected counties. The funds will be used for the development of industrial parks aimed at boosting local manufacturing and agribusiness, thereby promoting economic growth. Hon. Owen Baya (Kilifi North) stressed the importance of these industrial parks in supporting local economies and creating jobs.
"Every county must have an industrial park to support its economic growth. These additional funds will ensure that CAIPs are completed, creating jobs and boosting local industries," said Hon. Baya.
The Leader of the Majority Party, Hon. Kimani Ichung'wah, also lauded the Bill, highlighting the importance of conditional allocations such as those for the CAIPs program. "These funds from the national government, including the conditional grants, will support counties in building critical infrastructure and promoting economic development," he said.
While the Bill was widely welcomed, lawmakers cautioned county governments against mismanaging the funds. Hon. Ferdinand Wanyonyi (Kwanza) urged governors to use the allocations effectively, ensuring that the resources directly benefit the people. "We hope that governors will take this responsibility seriously and prevent corruption that could derail these efforts," he said.
With the Bill now passed by the National Assembly, it is set to be considered by the Senate. If enacted, the Bill will inject billions of shillings into county governments, enhancing healthcare, infrastructure, and industrialization efforts across Kenya. The additional allocations are expected to significantly improve the quality of services and accelerate development in counties.
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