22 December 2012

Kenya: Cabinet Okays Sh73.2 Billion for Police, Teachers Pay

LECTURERS, police and health workers are the biggest beneficiaries of the Sh73.2 billion supplementary budget that was approved on Thursday by Cabinet.

The supplementary budget No.1 for the period 2012-2013 recommended an additional Sh60.2 billion for recurrent expenditure and Sh13 billion for development expenditure.

However cabinet's endorsement must get Parliament's approval which can only be done in January since the House is on a Christmas break.

A statement released after the cabinet meeting said a bulk of the recurrent expenditure will be spent on payments for health workers, police and the lecturers after negotiations and agreements on the return to work formula for these civil servants.

Consequently, the Cabinet has asked the striking nurses to return to work.

It has urged employees to only associate themselves with strong workers unions to enhance their negotiation power and stop working with multiple unions.

Devolution-related expenditure has also been factored in the supplementary budget as the country moves towards county governments next year after the general elections.

"The recurrent expenditure will be largely spent on payment of administrative costs and operationalization of county offices and other expenditure accruing from devolution," said the Cabinet statement.

Other areas set to be financed under the supplementary budget include the elections security and other operational expenses related to the elections funding for implementation of constitutional reforms.

The Minister's meeting moved to put in place policies to guide fund devolutions after the geenral elections with approval of the Division of Revenue Bill 2012.

The Bill stipulates that the Central Government will get 79.5 per cent share of revenue while counties will get 20.1 per cent. The equalization fund will get 0.5 per cent.

The Cabinet has also approved the County Allocation Bill 2012 that provides for the equitable division of revenue raised nationally among county governments for the next financial year and the responsibilities of the county and national governments.

Transition to County Allocation of Revenue Bill 2012 was also approved to provide for the transfer of funds that will enable counties become operational soon after the elections in March.

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