Divisionof Revenue Act No 12of 2014 - as Plain Text by MWakili

"& ISSUE 3 SPECIAL .ci!o <9^.'{\ Kenya Gazette Supplement No.

l2l iActs No.

12) $ REPUBLIC OF KENYA KENYA GAZETTE SUPPLEMENT ACTS, 2014 NAIROBI, 4th August, 2014 Act- PAGE The Division of Revenue Act, 2014.,.

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1J'l4'i -'-]tl tQQ r.'l,.itiUtj1, KEIdY{ PRINTED AND PIJBUSHED BY TTIE GOVERNMENT PRINTER' NAIROBI l 159 THE DIVISION OF REVENUE ACT No.

12 of20l4 Date of Assent: 30th July,2014 Commencement Date : 4th August, 20 I4 ARRANGEMENT OF SECTIONS Section l-Short title and commencement.

2-Interpretation.

3-Object and purpose of this Act.

4-Allocations to County Gclvernment.

S-Variation in Revenue.

'6-Resolution of disputes and payment of wasteful expenditure.

SCHEDULE ALLOCATION OF REVENUE RAISEI) NATIONALLY BETWEEN THE NATIONAL AND COUNTY GOVERNMENTS FOR FINANCIAL YEAR 2014n5 160 Division of Revenue 2014 No.

12 THE DMSION OF REVENUE ACT,20L4 AN ACT of Parliament to proyide for the equitable division of revenue raised nationally between the ll national and county governments in 20L4ll5 l financial year, and for connected purposes ENACTED by the Parliament of Kenya, as follows- l.This Act may be cited as the Division of Revenue Short title and Act,20l4, and shall come into operation upon publication.

commencement.

2.(l) In this Act, unless the context otherwise Intprpretation.

requires- "Cabinet Secretary" means the Cabinet Secretary for the time being responsible for matters relating to finance; "coun{/ allocation" means the share of national revenue computed in accordance with article 203(2) of the Constitution that is allocated for the use of the County government consisting of the County Executive and the County Assembly; oonational allocation" means the share of national revenue computed in accordance with Article 203(2) of the Constitution that is allocated for the use of the national government consisting of the Executive, Parliament and the Judiciary; "revenue" has the meaning assigned to it under section 2 of the Commission on Revenue Allocation Act, 20ll; "State Organ" has the meaning assigned to it under Article 260 of the Constitution; "wasteful expenditure" has the meaning assigned to it under section 2 of the Public Finance Management Act, No.

lSof Dl2.

2012.

3.

The object and purpose of this Act is to provide for Objec.t and purpocc the equitable division of revenue raised nationally between of this Act.

the national and county.

levels of government for the financial year 20l4ll5 in accordance with Article 203(2) of the Constitution.

I l6r 2014 Division of Revenue No.

12 4.

(1) Revenue raised by the national government in Allocations o respect of the financial year 2Al4l15 shall be divided county govemments.

among the national and county governments as set out in the Schedule to this Act.

(2) In accordance with the provisions of Article 187(2) and Article 203(1)(d) of the Constitution, and for further certainty, the allocation for the national government under subsection (1) includes Kshs.1.87 billion conditional allocation for financing all Level 5 hospitals as currently listed.

5.

(l) If the actual revenue raised nationally in a [il:j]:.

financial year falls short of the expected revenue set out in the Schedule, the shortfall shall be borne by the National Government, to the extent of the threshold prescribed in the regulations by the Cabinet Secretary.

(2) If the shortfall in revenue referred to in sub-section (1) exceeds the threshold prescribed by the Cabinet Secretary, the shortfall in excess of that threshold shall be apportioned between the national and county governmeqts on a prorarc basis.

(3) If the actual revenue raised nationally in a financial year exceeds the expected revenue set out in the Schedule, the excess revenue shall be apportioned between the national government and county governments on a prorata basis.

6.

(1, Any State Organ involved in an Resolution of disputes and intergovernmental dispute regarding any provision of this payment of wasteful Act or any division of revenue matter or allocation shall, in expenditure.

accordance with Article 189 of the Constitution and before approaching a cout to resolve such dispute, make every effort to settle the dispute with the other State Organ concerned, including exhausting all alternative mechanisms provided for resolving disputes in relevant legislation.

(2) If a court is satisfied that a State Organ, in an altempt to resolve a dispute has not exhausted all the mechanisms for alternative dispute resolutions as contemplated in section 35 of the Intergovernmental Relations Act and refers the dispute back for the reason that 162 Division of Revenue 2014 No.

12 the State Organ has not complied with subsection (1), the expenditure incurred by that State Organ in approaching the court shall be regarded as wasteful expenditure.

(3) The costs in respect of such wasteful expenditure referred to in subsection (2) shall, in accordance with a prescribed procedure, be recovered without delay from the person who caused the State Organ not to comply with the requirements of subsection (1).

163 2014 Division of Revenue No.

12 SCHEDULE ALLOCATION OF REVENUE RAISED NATIONALLY BETWEEN THE NATIONAL AND COUNTY GOVERNMENTS FOR FINANCIAL YEAR 2OI4II5 Type / Level of allocation Amount in Kshs.

Article 203(2) billions (Minimum threshold- 1s%) Total Shareable Revenue 1.026.31 A.

National Allocation 799.65 of which; 1.45 Conditional allocation for Economic Stimulus Package I Conditional allocation for 1.87 Level 5 Hospitals Equalization Fund 3.4B.

County Allocation' 226.66 43o/o Note t For completion of centers of excellence under the Economic Stimulus Package in all 290 constituencies (5 million per constituency).

2 Based rin 2009/10 audited revenues approved by the National Assembly, the represents j County Allocation of l{shs.

226.66 bitlion 4j% of Kshs.

529.

billion audited revenue approved by the National Assembly in accordance with Article 203(3) of the Constitution, I.