The Divisionof Revenue Act No 9of 2016 - as Plain Text by MWakili

SPECIAL ISSUE C4;z-~ roo Kenya Gazette Supplement No.

66 (Acts No.

9) -S REPUBLIC OF KENYA KENYA GAZETTE SUPPLEMENT ACTS, 2016 NAIROBI, 9th May, 2016 CONTENT Act - PAGE The Division of Revenue Act, 2016 .151 Ie MAY 21S * TEL: 219231 F:2i1?694 PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTER, c .- /, I -SF\ , , _4.

.V' L4 t 151 THE DIVISION OF REVENUE ACT No.9 of 2016 Date of Assent: 6th May, 2016 Date of Commencement: 23rd May, 2016 ARRANGEMENT OF SECTIONS Section 1 Short title.

2 Interpretation.

3Object and purpose of this Act.

4Allocations to national and county governments.

5Variation in revenue.

- 6Resolution of disputes and payment of wasteful expenditure.

SCHEDULEEQUITABLE SHARE OF REVENUE RAISED NATIONALLY BETWEEN THE NATIONAL AND COUNTY GOVERNMENTS FOR FISCAL YEAR 2016/17 152 No.

9 Division of Revenue 2016 THE DIVISION OF REVENUE ACT, 2016 AN ACT of Parliament to provide for the equitable division of revenue raised nationally between the national and county governments in 2016/17 financial year, and for connected purposes ENACTED by the Parliament of Kenya, as follows 1.

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

Act, 2016.

2.

(1) In this Act, unless the context otherwise Interpretation.

requires - "Cabinet Secretary" means the Cabinet Secretary for the time being responsible for matters relating to finance; "conditional allocations" for the purposes of this Act, means additional resources allocated to county governments from revenue raised nationally; "revenue" has the meaning assigned to it under section No.

16 of 2011 2 of the Commission on Revenue Allocation Act, 2011; "State organ" has the meaning assigned to it under Article 260 of the Constitution; and "wasteful expenditure" has the meaning assigned to it under section 2 of the Public Finance Management Act, No.

18 of 2012.

2012.

3.

The object and purpose of this Act is to provide Object and for purpose of this Act.

the equitable division of revenue raised nationally between the national and county levels of government for the financial year 2016/17 in accordance with Article 203(2) of the Constitution; conditional allocations to county governments in accordance with Articles 202(2) and 187(2) of the Constitution.

4.

The revenue raised by the national government in Allocations to respect of the financial year 2016/17 shall be divided national and 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 a Variation in financial year falls short of the expected revenue set out in revenue.

153 2016 Division of Revenue No.

9 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 actual revenue raised nationally in respect of the 2016/17 financial year exceeds the anticipated revenue set out in the Schedule, the excess accrues to the national government, and may be used to reduce borrowing or pay debts as part of its share of revenue raised nationally.

Resolution of in an involved organ State Any (1) 6.

disputes and intergovernmental dispute regarding any provision of this payrnen, of Act or any division of revenue matter or allocation shall, in wasteful accordance with Article 189 of the Constitution, and before expenditure.

approaching a court 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.

If a court is satisfied that a State organ, in an No.

2o 2012.

attempt to resolve a dispute, has not exhausted all the resolutions as dispute alternative for mechanisms of the Intergovernmental contemplated in section 35 Relations Act, 2012 and refers the dispute back for the not complied with State organ has reason that the subsection (1), the expenditure incurred by that State organ in approaching the court shall be regarded as wasteful expenditure.

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 state officer(s) who caused the State Organ not to comply with the requirements of subsection (1).

154 Division Revenue 2016 No.

9 of SCHEDULE ALLOCATION OF REVENUE RAISED NATIONALLY BETWEEN THE NATIONAL AND COUNTY GOVERNMENTS FOR FISCAL YEAR 2016/17 Type/ level of allocation Amount in Kshs.

% of FY 2013/14 audited revenue (K sh.

935,653 millions*) A.

National Government Revenue Share 1,099,899,000,000 01w: Free maternal healthcare.

4,121,029,353 Leasing of medical equipment.

4,500,000,000 Compensation for use fees foregone.

900,000,000 Level 5 Hospitals.

4,000,000,000 Special purpose grant supporting access to emergency medical services.

200,000,000 Allocation from Fuel Levy Fund (15%).

4,306,807,629 Conditional allocations (loans and grants) 3,870,679,737 Equalisation Fund 6,000,000,000 0.64% B.

County Equitable Share 280,300,000,000 Add Conditional Allocation 21,897,516,719 0/w: Free maternal healthcare.

4,121,029,353 Leasing of medical equipment.

4,500,000,000 Compensation for use fees foregone.

900,000,000 30.0% Level 5 Hospitals.

4,000,000,000 Special purpose grants supporting access to emergency medical services.

200,000,000 Allocation from Fuel Levy Fund (15%).

4,306,807,629 Conditional allocations (loans and grants) 3,870,679,737 Total County Allocation 302,197,516,719 32.3% Total Shamble Revenue 1,380,199,000,000 * based on 2013/14 audited revenues as approved by the National Assembly.

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