“Governors may go to the new financial year without budgets in place, stagnating development and leading to chaotic transition process. The constitution obligates counties to develop Budgets after the approval of the Division of Revenue Bill by Parliament”
– Meru Governor and Outgoing Chair of the Council of Governors, Mr Peter Munya, during his State of Devolution Address on May 22, 2017.
Meru Governor Peter Munya was expressing concern at the delay by Parliament in passing the Division of Revenue Bill and the County Revenue Allocation Bill, which must be passed before counties can pass a budget. If the Bills are delayed, county governments risk not having a budget to implement after the election.
Article 224 of the Constitution says:
“On the basis of the Division of Revenue Bill passed by Parliament under Article 218, each county government shall prepare and adopt its own annual budget and appropriation Bill in the form, and according to the procedure, prescribed in an Act of Parliament.”
According to the Constitution, there are two Bills which pertain to the division of funds between national government and the counties.
The Division of Revenue Bill specifies how funds are divided between the national government and the county governments, while the County Allocation of Revenue Bill divides the funds received through the Division of Revenue Bill among the counties.