The Equalisation Fund Appropriation Bill, 2025

SPECIALISSUE

Kenya Gazette Supplement No.8O (National Assembly Bills No.21)

REPUBLIC OFKENYA

KENYA GAZETTE SUPPLEMENT

NATIONALASSEMBLYBILLS,2025

NAIROBI,12thJune,2025

CONTENT

| Bill for Introduction into the National Assembly- | Bill for Introduction into the National Assembly- | |-----------------------------------------------------|-----------------------------------------------------| | | PAGE | | The Equalisation Fund Appropriation Bill,2025 | 521 |

THE EQUALISATION FUND APPROPRIATION

BILL,2025

ARRANGEMENTS OF CLAUSES

Clause

• 1-Short title.
• 2-Interpretation.
• 3-Issue of monies out of the Fund.
• 4-Appropriation of the money granted.
• 5-Exclusion from County Revenue Fund.
• 6Duration for approval of projects.
• 7-Withdrawals from the Fund.

SCHEDULE:ALLOCATION TO BENEFICIARY COUNTIES FROM EQUALISATION FUND

THEEQUALISATION FUND APPROPRIATION BILL,2025

A Bill for

AN ACT of Parliament to authorize the issue of a sum of money out of the Equalisation Fund and its application towards the service of the year ending 30th June,2026;to appropriate that sum for certain public basic services; and for connected purposes

ENACTED by theParliament ofKenya,asfollows-

• 1.This Act may be cited as the Equalisation Fund Appropriation Act,2025,and shall be deemed to have come into force on 1st July,2025.
• 2.In this Act-

"Board"means the Equalisation Fund Advisory Board established under regulation 4of the Public Finance Management (Equalization Fund Administration)

Regulations;

"beneficiary county"means a county identified as

beneficiary of the Fund by the Commission on Revenue Allocation inthe marginalizationpolicy developed pursuant to Article 216(4) of the Constitution and set out in column A of the Schedule;and

"Fund"means the Equalisation Fund established under Article204(l) of the Constitution.

• 3.The Board may issue the sum of Kenya Shillings, sixteen billion eight hundred million (KSh. 16,800000,000),being allocation forFY 2025/26,out of the Fund and apply it towards the supply granted for the service of the year ending on the 30th June,2026 of which-

Issue of monies outof theFund.

L.N.No.54of 2021.

• (a)Kenya shillings five hundred and fourmillion shall be applied towards the expenses of the Board in accordance with regulation 10(3) of the Public Finance Management (Equalization Fund Administration) Regulations;and

Short title

Interpretation.

L.N.No.54of 2021.

• (b)Kenya shillings sixteen billion,two hundred ninety-six millionshallbetransferredto beneficiary counties in accordance with the
• Schedule.
• 4.The sums granted under section 3 shall and set out
• in column C of the Schedule shall be applied towards the basic services under Article 204(2) of the Constitution of which-
• (a) beneficiary counties specified in column A of the Schedule;and
• (b) constituencies specified in column Bof the Schedule.
• 5.(1) The sums transferred under section 4 shall not be paid into the County Revenue Fund.
• (2) A beneficiary county to which funds are to be
• transferred shall open a special purpose account in the Central Bank of Kenya into which shall be paid that beneficiary countys allocation of the Fund for the respective financial year.
• 6.Despite the provisions of this Act,the approval granted under section 4 shall continue in force until all the projects identified in each constituency specified in column B of the Schedule are completed and this Act shall be sufficient authority for the Controller of Budget to authorize withdrawal of funds from the Fund for the amounts specified in column C of the Schedule for each county specified in column A of the Schedule,where the projects are implemented for a period beyond one financial year.
• 7.The authorization by the Controller of Budget of a withdrawalfromtheFund,togetherwith written instructions from the secretary of the Board through National Treasury requesting for the withdrawal, shall be sufficient authority for the Central Bank of Kenya to pay amounts from the Fund Account in accordance with the approval and instructions given.

Appropriation of the money granted.

Exclusion from County Revenue Fund.

Duration of approval of projects.

Withdrawalsfrom the Fund.

(s.2,3(b),4,5)

ALLOCATION TO BENEFICIARY COUNTIESFROM EQUALISATION FUND

| A | B | C | |--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------| | | Recurrent Expenditure | KSh. | | Equalisation Fund Secretariat3 | The amount required in the year ending 30th June,2026 for Equalisation Fund Secretariat expenses | 504,000,000 | | | Sub-class total | 504,000,000 | | | Development Expenditure | KSh. | | COUNTY | CONSTITUENCY | FY2025/26 | | BARINGO | The amount required in the year ending 30th June,2026 in Baringo County for development expenses (provisionof basic services including water,roads health facilities and electricity) | 967,681,327 | | | BARINGO NORTH | 86,554,756 | | | BARINGOSOUTH | 134,368,950 | | | MOGOTIO | 164,233,062 | | | TIATY | 582,524,558 | | BOMET | The amount required in the year ending 30th June,2026 in Bomet County for development expenses (provisionof basic services including water,roads, health facilities and electricity) | 31,249,275 | | | CHEPALUNGU | 31,249,275 | | BUNGOMA | The amount required in the year ending 30th June,2026 in Bungoma County for development expenses(provisionof basic services including water,roads, health facilities and electricity) | 95,592,537 | | | MTELGON | 95,592,537 | | BUSIA | The amount required in the year ending 30th June,2026 in Busia County for | |

SCHEDULE

(s.2,3(b),4,5)

SCHEDULE

ALLOCATION TO BENEFICIARY COUNTIES FROM EQUALISATION FUND

| A | B | C | |-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------| | | development expenses (provision of basic services including water, roads, health facilities and electricity) | 29,239,974 | | | BUDALANGI | 9,710,807 | | | TESO NORTH | 19,529,167 | | ELGEYO MARAKWET | The amount required in the year ending 30th June,2026 in Elgeyo Marakwet Countyfordevelopment expenses (provision of basic services including water,roads,health facilities and electricity) | 105,894,890 | | | KEIYOSOUTH | 9,039,410 | | | MARAKWETEAST | 87,509,704 | | | MARAKWETWEST | 9,345,776 | | GARISSA | The amount required in the year ending 30th June,2026 in Garissa County for development expenses (provisionof basic services including water,roads, health facilities and electricity) | 1,026,040,684 | | | BALAMBALA | 256,507,727 | | | DADAAB | 152,216,367 | | | FAFI | 144,459,455 | | | GARISSA TOWNSHIP | 23,942,133 | | | IJARA | 287,356,119 | | | LAGDERA | 161,558,883 | | HOMA BAY | The amount required in the year ending 30th June,2026 in Homa Bay County for development expenses (provision of basic services including water, roads, health facilities and electricity) | 214,023,965 |

(s.2,3(b),4,5)

ALLOCATION TO BENEFICIARY COUNTIESFROM EQUALISATIONFUND

| A | B | C | |---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------| | | HOMABAYTOWN | 10,440,869 | | | NDHIWA | 120,305,473 | | | SUBANORTH | 29,748,410 | | | SUBASOUTH | 53,529,213 | | ISIOLO | The amount required in the year ending 30th June,2026 in Isiolo County for development expenses (provisionof basic services including water,roads, health facilities and electricity) | 270,219,210 | | | ISIOLONORTH | 162,425,832 | | | ISIOLOSOUTH | 107,793,378 | | KAJIADO | The amount required in the year ending 30th June,2026 in Kajiado County for development expenses (provisionof basic services including water,roads, health facilities and electricity) | 674,525,449 | | | KAJIADO CENTRAL | 233,919,794 | | | KAJIADOSOUTH | 102,681,312 | | | KAJIADO WEST | 337,924,343 | | KERICHO | The amount required in the year ending 30th June,2026 in Kericho County for development expenses (provisionof basic services including water, roads, health facilities and electricity) | 99,011,445 | | | BURETI | 10,812,419 | | | KIPKELIONWEST | 10,385,463 | | | SIGOWET/SOIN | 77,813,563 | | KILIFI | The amount required in the year ending 30th June,2026 in Kilifi County for | |

SCHEDULE

(s.2,3(b),4,5)

ALLOCATION TOBENEFICIARY COUNTIESFROM EQUALISATIONFUND

| A | B | C | |--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------| | | development expenses (provision of basic services including water,roads health facilities and electricity) | 878,031,953 | | | GANZE | 313,863,249 | | | KALOLENI | 175,930,356 | | | KILIFINORTH | 11,584,851 | | | MAGARINI | 300,133,840 | | | MALINDI | 53,977,354 | | | RABAI | 22,542,304 | | KISUMU | The amount required in the year ending 30th June,2026 in Kisumu County for development expenses(provisionof basic services including water,roads, health facilities and electricity) | 39,573,290 | | | MUHORONI | 20,167,972 | | | NYANDO | 19,405,318 | | KITUI | The amount required in the year ending 30th June,2026 in Kisumu County for developmentexpenses(provisionof basic services including water,roads, health facilities and electricity) | 646,409,901 | | | KITUIEAST | 215,946,897 | | | KITUISOUTH | 149,954,477 | | | MWINGI CENTRAL | 95,410,021 | | | MWINGINORTH | 185,098,505 | | KWALE | The amount required in the year ending 30th June,2026 in Kwale County for development expenses (provisionof basic services including water,roads, health facilities and electricity) | 475,834,422 |

SCHEDULE

(s.2,3(b),4,5)

ALLOCATION TO BENEFICIARY COUNTIESFROM EQUALISATION FUND

| A | B | C | |----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------| | | KINANGO | 265,266,845 | | | LUNGA LUNGA | 130,555,678 | | | MATUGA | 59,410,452 | | | MSAMBWENI | 20,601,446 | | LAIKIPIA | The amount required in the year ending 30th June,2026 in Laikipia County for development expenses (provisionof basic services including water,roads, health facilities and electricity) | 194,020,583 | | | LAIKIPIA NORTH | 182,140,774 | | | LAIKIPIA WEST | 11,879,809 | | LAMU | The amount required in the year ending 30th June,2026 in Lamu County for development expenses (provision of basic services including water,roads, health facilities and electricity) | 93,697,308 | | | LAMU EAST | 41,721,107 | | | LAMUWEST | 51,976,201 | | MACHAKOS | The amount required in the year ending 30th June,2026 in Machakos County for development expenses (provision of basic services including water, roads, health facilities and electricity) | 21,016,995 | | | MASINGA | 21,016,995 | | MANDERA | The amount required in the year ending 30th June,2026 in Mandera County for development expenses (provision of basic services including water,roads health facilities and electricity) | 1,225,254,814 | | | BANISSA | 157,776,574 |

SCHEDULE

(s.2,3(b),4,5)

ALLOCATION TO BENEFICIARY COUNTIESFROM EQUALISATIONFUND

| A | B | C | |----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------| | | LAFEY | 247,689,943 | | | MANDERAEAST | 209,045,527 | | | MANDERANORTH | 231,939,825 | | | MANDERASOUTH | 227,192,791 | | | MANDERAWEST | 151,610,154 | | MARSABIT | The amount required in the year ending 30th June,2026 in Marsabit County for development expenses (provisionof basic services including water,roads, health facilities and electricity) | 763,773,939 | | | LAISAMIS | 302,749,353 | | | MOYALE | 175,933,615 | | | NORTHHORR | 239,618,517 | | | SAKU | 45,472,454 | | MERU | The amount required in the year ending 30th June,2026 in Meru County for development expenses (provisionof basic services including water,roads, health facilities and electricity) | 48,669,736 | | | IGEMBESOUTH | 19,532,427 | | | SOUTHIMENTI | 9,893,322 | | | TIGANIAEAST | 19,243,987 | | MIGORI | The amount required in the year ending 30th June,2026 in Migori County for development expenses (provisionof basic services including water, roads, health facilities and electricity) | 289,094,906 | | | KURIA WEST | 11,594,628 |

SCHEDULE

(s.2,3(b),4,5)

SCHEDULE

ALLOCATIONTO BENEFICIARY COUNTIESFROM EOUALISATIONFUND

| A | B | C | |----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------| | | NYATIKE | 178,265,578 | | | SUNA WEST | 77,917,858 | | | URIRI | 21,316,842 | | MURANG'A | The amountrequired in the year ending 30th June,2026 in Muranga County for development expenses(provisionof basic services including water,roads, health facilities and electricity) | 9,236,592 | | | GATANGA | 9,236,592 | | NAKURU | The amount required in the year ending 30th June,2026 in Nakuru County for development expenses (provisionof basic services including water,roads, health facilities and electricity) | 10,465,313 | | | RONGAI | 10,465,313 | | NANDI | The amount required in the year ending 30th June,2026 in Nandi County for development expenses(provisionof basic services including water,roads, health facilities and electricity) | 189,860,206 | | | NANDIHILLS | 20,159,824 | | | TINDERET | 169,700,382 | | NAROK | The amount required in the year ending 30th June,2026 in Narok County for developmentexpenses(provisionof basic services including water,roads, health facilities and electricity) | 1,254,952,707 | | | EMURUA DIKIRR | 36,323,860 | | | KILGORIS | 350,053,482 | | | NAROKEAST | 148,337,911 |

(s.2,3(b),4,5)

ALLOCATIONTOBENEFICIARYCOUNTIESFROM EOUALISATIONFUND

| A | B | | |--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------| | | NAROK NORTH | 246,547,591 | | | NAROK SOUTH | 278,241,748 | | | NAROKWEST | 195,448,116 | | SAMBURU | The amount required in the year ending 30th June,2026 in Samburu County for developmentexpenses(provisionof basic services including water,roads health facilities and electricity) | 1,056,572,934 | | | SAMBURUEAST | 308,536,075 | | | SAMBURUNORTH | 498,423,984 | | | SAMBURUWEST | 249,612,875 | | SIAYA | The amount required in the year ending 30th June,2026 in Siaya County for development expenses (provisionof basic services including water,roads health facilities and electricity) | 51,997,386 | | | BONDO | 20,563,966 | | | GEM | 19,889,310 | | | RARIEDA | 11,544,111 | | TAITA TAVETA | The amount required in the year ending 30th June,2026 in Taita Taveta County for development expenses (provision of basic services including water,roads, health facilities and electricity) | 21,686,762 | | | TAVETA | 10,305,612 | | | VOI | 11,381,150 | | TANA RIVER | The amount required in the year ending 30th June,2026 in Tana River County for development expenses (provision of basic services including water,roads, health facilities and electricity) | 719,015,252 |

SCHEDULE

(s.2,3(b),4,5)

ALLOCATION TO BENEFICIARY COUNTIESFROM EQUALISATIONFUND

| A | B | C | |---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------| | | BURA | 259,489,901 | | | GALOLE | 196,502,469 | | | GARSEN | 263,022,881 | | THARAKA NITHI | The amount required in the year ending 30th June,2026 inTharakaNithi County for development expenses (provision of basic services including water,roads,health facilitiesand electricity) | 71,565,664 | | | MAARA | 18,450,370 | | | THARAKA | 53,115,294 | | TRANS NZOIA | The amount required in the year ending 30th June,2026 in Trans Nzoia County for development expenses (provision of basic services including water,roads, health facilities and electricity) | 12,161,730 | | | ENDEBESS | 12,161,730 | | TURKANA | The amountrequired in the year ending 30th June,2026 in Turkana County for development expenses (provisionof basic services including water,roads. health facilities and electricity) | 1,860,614,374 | | | LOIMA | 340,702,817 | | | TURKANACENTRAL | 210,644,168 | | | TURKANAEAST | 190,727,155 | | | TURKANA NORTH | 516,114,959 | | | TURKANASOUTH | 185,266,354 | | | TURKANAWEST | 417,158,921 | | WAJIR | The amount required in the year ending 30th June,2026 in Wajir County for development expenses(provision of basic services including water,roads, health facilities and electricity) | 1,187,457,792 |

SCHEDULE

(s.2,3(b),4,5)

ALLOCATION TO BENEFICIARY COUNTIESFROM EQUALISATION FUND

| A | B | C | |-------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------| | | ELDAS | 158,053,606 | | | TARBAJ | 197,481,861 | | | WAJIR EAST | 88,428,800 | | | WAJIR NORTH | 242,687,060 | | | WAJIR SOUTH | 335,743,934 | | | WAJIR WEST | 165,062,531 | | | WEsT POKOT The amount required in the year ending 30th June,2026 in West Pokot County for development expenses (provision of basic services including water, roads, health facilities and electricity) | 1,661,556,686 | | | KACHELIBA | 570,382,383 | | | KAPENGURIA | 436,047,654 | | | POKOTSOUTH | 236,170,276 | | | SIGOR | 418,956,373 | | | Sub-class total | 16,296,000,000 | | Total Equalisation Fund | Total Equalisation Fund | 16,800,000,000 |

SCHEDULE

MEMORANDUM OF OBJECTSAND REASONS

Statement of the Objects and Reasons for the Bill

The principal object of the Bill is to authorize the issue of a sum of

money outof the Equalisation Fund and its application towards the service of 2025/26 financial year.Article 204(1) of the Constitution establishes the Equalisation Fund to facilitate the provision of basic services including water,roads,health facilities and electricity to marginalised areas to the extentnecessary to bring the quality of those services in those areas to the level generally enjoyed by the rest of the nation,so far as possible.

This Bill therefore proposes a legal framework for the issuance of

monies out of the Equalisation Fund to counties in which marginalized areas fall for the provision of these crucial basic services.

Statement on the delegation of legislative powers and limitation of

fundamental rights and freedoms.

This Bill does not delegate legislative powers nor limit fundamental

rights and freedoms.

Statement as to whether the Bill concerns county governments

The Bill is a Bill concerning county governments in terms of Article

110 (l) (a) of the Constitution as it contains provisions affecting the powers and functions of county governments as set out in the Fourth Schedule to the Constitution.

Statement as to whether the Bill is a money Bill within the meaning of

Article 114 of the Constitution

The Bill is a money Bill for purposes of Article ll4 of the

Constitution as the enactment of this Bill shall occasion additional expenditure ofpublicfunds.

Dated the 11th June,2025

SAMUELATANDI,

Chairperson,Budget and Appropriations Committee.