Nairobi, Bungoma, Nakuru, Turkana and Kakamega counties will be hardest hit by President William Ruto’s proposed drastic budget cuts to counties this financial year.
In a memorandum to Parliament, the President reduced allocations to devolved departments by a whopping Sh20 billion, from Sh400.1 billion to Sh380 billion.
As a result, all 47 devolved departments suffered budget cuts ranging from Sh1.1 billion to Sh140 million, dealing a major blow to programmes for the year.
If Parliament cannot muster a two-thirds majority to overturn the presidential memorandum, Nairobi stands to lose a massive Sh1.1 billion from its original allocation.
The Johnson Sakaja-led administration’s budget has been slashed from Sh20.88 billion to Sh19.98 billion.
Bungoma will lose Sh790 million from Sh11.45 billion to Sh10.75 billion, while Nakuru’s allocation has been reduced by Sh740 million.
Under the President’s proposal, Turkana County will lose Sh700 million and Kakamega County will lose Sh690 million.
Other big losers are Kiambu which will lose Sh670 million, Sh610 million, Mandera (Sh580 million), Kitui (Sh570 million), Meru (Sh520 million) and Machakos (Sh500 million).
Others include Wajir (Sh490 million), Kisii (Sh470 million), Uasin Gishu (Sh460 million) and Narok (Sh460 million).
They will lose Kajiado (Sh450 million), Kisumu (Sh440 million), Migori (Sh440 million), Makueni (Sh420 million), Trans Nzoia (Sh410 million) and Busia (Sh400 million).
In the memorandum, Governor Ruto refused to sign the County Revenue Allocation Bill 2024, which provides for the allocation of Sh400.1 billion to the devolved departments.
The new figure is Sh5 billion less than the Sh385 billion that county governments received in the previous financial year (2023-24).
CARB is a bill that distributes money appropriated from the state budget to 47 local governments.
Instead, the president has proposed an amendment that would cut the budget allocation to Sh380 billion, hitting counties hard.
“In exercise of the powers vested in me by section 115(1)(b) of the Constitution, I refuse to give assent to the County Revenue Allocation Bill, 2024 and refer the bill for reconsideration by the Senate,” Ruto said.
“I recommend that the Bill be amended by deleting the First Schedule to the Bill and replacing it with the Schedule attached in the Memorandum.”
In refusing to sign the bill, the President cited the failure of the Finance Bill, 2024, which he said necessitated a restructuring and streamlining of the government’s fiscal setup for the current financial year.
Mombasa suffered losses of Sh390 million, Siaya Sh390 million, Murang’a Sh380 million, Marsabit Sh370 million and Nyeri Sh330 million while Homabay and Garissa suffered losses of Sh420 million each.
Baringo lost Sh370 million, Bomet Sh380 million, Kericho Sh360 million, West Pokot Sh360 million, Tana River Sh350 million and Nyeri Sh330 million.
According to the memo, Kwale had the lowest loss at Sh140 million, followed by Lamu (Sh170 million), Tharaka Niti (Sh210 million), Elgeyo Marakwet (Sh250 million) and Taita Taveta (Sh250 million).
Others include: Vihiga Sh260 million, Isiolo Sh240 million, Embu Sh280 million, Kirinyaga Sh290 million and Laikipia Sh280 million.
Article 115 provides that each House of Parliament must amend the bill by majority vote taking into account the President’s reservations.
Alternatively, by a vote supported by two-thirds of the members of each house, the bill could be passed again without amendments or with amendments that do not fully take into account the President’s reservations.