Nairobi, Bungoma, Nakuru, Turkana, and Kakamega are among the biggest losers in President William Ruto’s proposed budget cuts for the current fiscal year. In a memorandum to Parliament, the President announced a significant reduction in allocations to devolved units, slashing the budget from Sh400.1 billion to Sh380 billion—a cut of Sh20 billion.
As a result, all 47 counties face reductions in their budgets ranging from Sh1.1 billion to Sh140 million, severely impacting their planned programs for the year. If Parliament does not secure a two-thirds majority to overturn the President’s memo, Nairobi stands to lose Sh1.1 billion, reducing its allocation from Sh20.88 billion to Sh19.98 billion.
Bungoma will see a decrease of Sh790 million, bringing its budget down to Sh10.75 billion from Sh11.45 billion, while Nakuru faces a reduction of Sh740 million. Turkana is set to lose Sh700 million, and Kakamega will forgo Sh690 million.
Other counties affected include Kiambu (Sh670 million), Kilifi (Sh610 million), Mandera (Sh580 million), Kitui (Sh570 million), Meru (Sh520 million), and Machakos (Sh500 million). Additional losses include Wajir (Sh490 million), Kisii (Sh470 million), Uasin Gishu (Sh460 million), and Narok (Sh460 million). Kajiado, Kisumu, Migori, and Makueni will each lose between Sh420 million and Sh450 million.
In his memorandum, President Ruto declined to sign the County Allocation of Revenue Bill, 2024, which proposed an allocation of Sh400.1 billion to devolved units. The new proposed figure is Sh5 billion less than the Sh385 billion allocated to county governments in the previous fiscal year.
The County Allocation of Revenue Bill (CARB) is designed to distribute national funds among the 47 counties. Instead, the President has recommended an amendment to reduce the total allocation to Sh380 billion, presenting a significant setback for county governments.
“In exercising the powers conferred on me by Article 115 (1) (b) of the Constitution, I decline to assent to the County Allocation of Revenue Bill, 2024, and refer the Bill for reconsideration by the Senate,” Ruto stated. He suggested that the Bill be amended to reflect the changes outlined in his memorandum.
The President’s refusal to sign the Bill is linked to the failure to enact the Finance Bill, 2024, necessitating a reorganization of the government’s financial arrangements for the current fiscal year.
Additional counties facing budget cuts include Mombasa (Sh390 million), Siaya (Sh390 million), Murang’a (Sh380 million), Marsabit (Sh370 million), and Homa Bay and Garissa (Sh420 million each). Baringo, Bomet, Kericho, and West Pokot also face reductions ranging from Sh350 million to Sh370 million.
According to the memorandum, Kwale will experience the smallest cut at Sh140 million, followed by Lamu (Sh170 million) and Tharaka Nithi (Sh210 million). Other counties like Elgeyo Marakwet, Taita Taveta, Vihiga, and Isiolo will see reductions ranging from Sh240 million to Sh280 million.
Article 115 allows Parliament to amend the Bill based on the President’s reservations or to pass it with a two-thirds majority without accommodating the President’s suggestions.
