- The Sh60 billion is an increase from Sh59.5 billion that the commission capped for counties this financial year (2018/19).
- The Public Finance Act caps county governments spending on compensation of employees at 35 per cent of revenues.
The Commission on Revenue Allocation (CRA) has capped counties’ annual recurrent expenditure at Sh60 billion in the 2019/20 Financial Year.
In the budget ceiling proposal presented to the Parliamentary Budget Office, CRA has barred county assemblies and the executive from exceeding the recurrent expenditure of Sh33.2 billion and Sh27 billion respectively.
Recurrent expenditure comprises lists of expenses that go into the running of the counties, such as salaries and allowances, operational costs which include travelling and accommodation, telephone, electricity and water bills, and maintenance costs incurred on equipment, buildings and installations.
The expenditure also includes funding for costs incurred to cover compulsory obligations such as bank charges, interest on debts, remuneration costs and other services.
The Sh60 billion is an increase from Sh59.5 billion that the commission capped for counties this financial year (2018/19).
In arriving at the amount, CRA considered a court ruling which quashed Gazette Notice No.6518 of July 2017 which affected salaries and other benefits to senior county officials: governors, their deputies, ward representatives and county executives.