County governments are facing a budget squeeze after President William Ruto declined to assent to the County Allocation of Revenue Bill, 2024.

This decision translates to a Sh20 billion reduction in county funding, bringing the total allocation down to Sh380 billion from the proposed Sh400 billion.

The President's memorandum explained the decline as a necessary consequence of the withdrawal of the Finance Bill 2024.

He argued that without the additional revenue streams envisioned in the Finance Bill, a Sh3.9 trillion budget for the 2024/25 financial year would create an unsustainable budget deficit.

"In exercise of 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 with the recommendations," stated the President's memo.

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The Senate, led by Speaker Amason Kingi, has directed the Finance and Budget Committee, chaired by Senator Ali Roba, to expedite a review of the Bill.

The Committee has until July 18th to submit its report for consideration by the full Senate.

This swift action aims to minimize disruption to county operations by ensuring the timely release of funds.

The revised allocation plan still sees Nairobi County receiving the biggest slice of the pie at Sh19.7 billion.

Nakuru follows closely with Sh13.3 billion, while Turkana, Kakamega, and Kiambu counties will each receive allocations exceeding Sh12 billion.

The remaining counties will see allocations ranging from Sh3.1 billion for Lamu to Sh19.7 billion for Nairobi.

This budget revision comes amidst the backdrop of a chaotic protest on June 25th that resulted in destruction of property and loss of life.

The protest targeted Parliament in a move seen as an attempt to pressure the passage of the Finance Bill.

President Ruto, who had previously championed the Bill, ultimately opted to withdraw it due to concerns about its fiscal feasibility.

The impact of this budget cut on county service delivery remains to be seen.

County officials across Kenya will be scrutinizing the revised allocations and making adjustments to their spending plans in the coming days.