Following the tabling of the 2023-2024 budget before the parliament, county governments have been allocated an extra KES 15 billion, in the coming financial year, as compared to the existing allocation of KES 370 billion. This allocation, however, surpasses the 15% minimum threshold set for the county’s equitable share. Under the bottom-up economic transformation agenda (BETA), the national government plans to invest heavily in agriculture, MSMEs, healthcare, housing and settlement, the digital economy, and the creative economy, which will largely help in generating revenue for the county governments.
Read more: FY2023/2024 Key Sectors Budget Allocations
The budget proposes the establishment of county-integrated agro-industrial parks, which have been allocated KES 4.7 billion out of the total of KES 26.7 billion allocated to the manufacturing sector. These industrial parks are part of Kenya Kwanza’s plan to promote manufacturing. County governments are expected to commit an amount of KES 250 million to support the project, as it will be a partnership between the devolved governments and the national government. Speaking before the Kenya Association of Manufacturers earlier this month, the PS for investments, trade, and industry, Juma Mukhwama, said that these industrial parks would help boost value addition, create employment, and enhance economic growth. The construction will be done in phases, with Nakuru, Busia, Muranga, Kakamenga, and Kirinyaga among the counties in the first phase of the project.
Read more: Kenya’s New Budget: Unraveling the Variance and Allocation Breakdown
In addition to this, county governments are expected to enhance their own source revenue (OSR) by developing updated valuation rolls to facilitate the levying of property rates at market prices as opposed to the current rates, which are based on outdated valuation rolls that have contributed to OSR underperformance. Other allocations to the counties include:
- Conditional allocations amounting to KES 56.7 billion compared to the existing allocation of KES 37.1 billion towards the same
- Equalization fund allocation amounting to KES 10.9 billion in FY 2023/2024, compared to the existing allocation of KES 7.1 billion.
- Mineral royalties share: the counties are expected to receive 20% of the KES 2.9 billion in outstanding royalties expected to be shared among 32 counties.
Read more: Transformation Of Local Economies Through County Industrial Parks
