Budget and Appropriations Committee Considers Senate Amendments to Revenue Bill
The Budget and Appropriations Committee, chaired by Hon. Ndindi Nyoro (Kiharu), convened today to deliberate on the Senate amendments to the Division of Revenue (Amendment) Bill, 2024. This legislation aims to adjust the distribution of national revenue between the National and County Governments in response to a projected revenue shortfall of Kshs. 346 billion for the Financial Year 2024/25.
The shortfall stems from the failure to enact the Finance Bill, 2024 into law. Under the proposed amendments, Kshs. 325.88 billion of the shortfall will be absorbed by the National Government, while Kshs. 20.12 billion will be deducted from the County Equitable Share. Consequently, the National Government’s allocation will decrease to Kshs. 2.214 trillion, down from Kshs. 2.540 trillion, and the County Government’s share will adjust to Kshs. 380 billion from Kshs. 400.117 billion.
During the session, Hon. Nyoro emphasized the importance of contextualizing these changes within the recently passed Supplementary Estimates I, which included allocations for the Equalization Fund. “Whatever we discuss today has to be in that context,” he stated.
Committee members expressed concern over the implications of the Senate amendments for the upcoming Supplementary II Estimates. They have two options: to approve the Senate’s amendments or reject them, which would necessitate referral to a Mediation Committee as outlined in Article 113 of the Constitution.
The committee plans to present its report in the National Assembly on Tuesday, marking a critical step in the budgetary process as the government navigates its fiscal challenges.
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