Divisionof Revenue Act No 3of 2020 - as Plain Text by MWakili

NATIONAL COUNCIL FOR LAW REPORTING LIBRARY SPECIAL ISSUE Kenya Gazette Supplement No.

57 (Acts No.

3) REPUBLIC OF KENYA KENYA GAZETTE SUPPLEMENT ACTS, 2020 NAIROBI, 27th April, 2020 CONTENT Act PAGE The Division of Revenue Act, 2020 31 PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTER, NAIROBI 31 THE DIVISION OF REVENUE ACT, 2020 No.

3 of 2020 Date of Assent: 25th April, 2020 Date of Commencement: 11th May, 2020 ARRANGEMENT OF SECTIONS Section 1Short title.

2Interpretation.

3Object and purpose of the Act.

4Allocations to national and county governments.

5Variation in revenue.

SCHEDULE ALLOCATION OF REVENUE RAISED NATIONALLY AMONG THE NATIONAL AND COUNTY GOVERNMENTS FOR THE FINANCIAL YEAR 2020/21 32 No.

3 Division of Revenue 2020 THE DIVISION OF REVENUE ACT, 2020 AN ACT of Parliament to provide for the equitable division of revenue raised nationally between the national and county governments in 2020/21 financial year, and for connected purposes ENACTED by Parliament of Kenya, as follows- 1.

This Act may be cited as the Division of Revenue Short title.

Act, 2020.

2.

Interpretation.

In this Act, unless the context otherwise requires, "revenue" has the meaning assigned to it under section 2 of the Commission on Revenue Allocation Act, 2011.

No.

16 of 2011.

3.

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

the national and county levels of government for the financial year 2020/21 in accordance with Article 203(2) of the Constitution.

4.

Allocations to The revenue raised by the national government in national and respect of the financial year 2020/21 shall be divided county among the national and county governments as set out in governments.

the Schedule to this Act.

5.

(1) If the actual revenue raised nationally in the Variation in financial year falls short of the expected revenue set out in revenue.

the Schedule, the shortfall shall be borne by the national government.

(2) If the actual revenue raised nationally in the financial year exceeds the projected revenues set out in the Schedule, the excess revenue shall accrue to the national government, and may be used to reduce borrowing or pay debts.

33 2020 Division of Revenue No.

3 (s.4) SCHEDULE ALLOCATION OF REVENUE RAISED NATIONALLY AMONG THE NATIONAL AND COUNTY GOVERNMENTS FOR THE FINANCIAL YEAR 2020/21 Percentage (%) of 2016/17 audited and Type/level of allocation Amount in Ksh.

approved revenue i.e.

KSh.1,357,698 Million A.

Total Sharable Revenue 1,856,700,000,000 National Government* 1,533,411,510,000 B.

Of which: 1.

Leasing of Medical Equipment 6,205,000,000 2.

Compensation for user fees forgone 900,000,000 3.

Level 5 hospitals 4,326,000,000 4.

Supplement for construction of county headquarters 300,000,000 5.

Rehabilitation of Youth Polytechnics 2,000,000,000 C.

Equalization Fund 6,788,490,000 0.50% D.

County equitable share 316,500,000,000 23.31% Memo items 1.

County equitable share 316,500,000,000 2.

Additional conditional allocations(National Government 13,731,000,000 share of Revenue) of which; 2.1.

Leasing of Medical Equipment 6,205,000,000 34 No.

3 Division of Revenue 2020 Percentage (%) of 2016/17 audited and Type/level of allocation Amount in Ksh.

approved revenue i.e.

KSh.1,357,698 Million 2.2 Compensation for user fees forgone 900,000,000 2.3 Level 5 hospitals 4,326,000,000 2.4 Supplement for construction of county headquarters 300,000,000 2.5 Rehabilitation of Youth Polytechnics 2,000,000,000 3.

Allocation from Fuel Levy 9,433,265,625 Fund (15%) 4.

Conditional allocations (Loans 30,204,347,510 & grants) of which: 4.1 IDA-Kenya Devolution Support Program (KDSP) (Level 1) 2,115,000,000 4.2 IDA-Transforming Health 4,345,375,741 Systems for Universal Care Project 4.3 DANIDA-Universal Healthcare For Devolved System 900,000,000 Program 4.4 IDA-National Agriculture & Rural Inclusive Growth Project 4,261,646,438 (NARIGP) 4.5 EU-Instruments for Devolution Advice and Support (IDEAS) 216,014,391 4.6 IDA (World Bank) - Kenya Climate Smart Agriculture Project 7,119,726,782 (KCSAP) 4.7 World Bank- Kenya Urban Support Program(KUSP)- UDG 6,366,000,000 4.8 IDA- Water and Sanitation Development Project (WSDP) 3,400,000,000 35 2020 Division of Revenue No.

3 Percentage (%) of 2016/17 audited and Type/level of allocation Amount in Ksh.

approved revenue i.e.

KSh.1,357,698 Million 4.9 Sweden Agriculture Sector Development Programme II ( 652,584,158 ASDP Il) 4.10 EU- Water Tower Protection and Climate Change Mitigation and Adaptation Programme 528,000,000 (Water) 4.11 Drought Resilience Programme in Northern Kenya 300,000,000 Total County Allocations= 369,868,613,135 27.24% (1+2+3+4) *The National Government share includes KSh.

4,300 million which is a special grant to the National Health Insurance Fund (NHIF) for free Maternal health care, to be disbursed as a reimbursement to county governments.

.