The finances disbursed to counties in Kenya are governed by the Division of Revenue Bill. Outline factors that Parliament may consider in passing the bill.

1. Population size: Parliament may consider the population size of each county when allocating funds, as larger populations may require more resources for services such as healthcare, education, and infrastructure.

2. Poverty levels: Counties with higher levels of poverty may require more financial support to address social and economic challenges faced by their residents.

3. Development needs: Parliament may consider the development needs of each county, such as the need for improved infrastructure, healthcare facilities, and educational institutions.

4. Geographic location: Counties located in remote or marginalized areas may require additional funding to address the challenges of isolation and limited access to services.

5. Revenue generation: Parliament may consider the revenue generation capacity of each county, as counties with lower revenue may require more financial support from the national government.

6. Special circumstances: Parliament may also consider any special circumstances or emergencies that may require additional funding for specific counties, such as natural disasters or public health crises.

7. Equity and fairness: Parliament may aim to ensure that the allocation of funds is done in a fair and equitable manner, taking into account the needs and priorities of each county.

Factors Parliament May Consider When Passing the Division of Revenue Bill

1. Constitutional Mandate:

- Article 203 of the Constitution outlines the principles of equitable distribution of revenue among national and county governments.

2. Fiscal Capacity and Needs:

- Parliament evaluates the revenue-generating capacity of different counties and their budgetary requirements.
- Factors considered include population, area, poverty levels, and infrastructure needs.

3. Equity and Fairness:

- The bill ensures fair distribution of funds to all counties, regardless of size or political affiliation.
- This aims to reduce regional disparities and promote socio-economic development.

4. Fiscal Responsibility:

- Parliament scrutinizes the proposed expenditure plans to ensure sound financial management.
- This includes assessing the sustainability of county budgets and preventing over-reliance on external financing.

5. Public Participation:

- Parliament seeks public input on the proposed allocation before approving the bill.
- Public consultations allow citizens to provide feedback on their priorities and ensure that the funds meet their needs.

6. Socio-Economic Indicators:

- Parliament considers socio-economic indicators such as health, education, and poverty rates when allocating funds.
- The bill aims to address the most pressing needs of communities and promote inclusive growth.

7. County Fiscal Performance:

- Parliament reviews the previous fiscal performance of counties.
- Counties with a track record of prudent financial management and development may receive higher allocations.

8. Regional and National Development Goals:

- The bill aligns with the national development goals and regional cooperation initiatives.
- It supports projects that foster economic growth, create jobs, and improve public services.

9. Intergovernmental Relations:

- Parliament ensures that the division of revenue promotes harmonious relations between the national and county governments.
- The bill clarifies the roles and responsibilities of each level of government in managing public funds.

10. Oversight and Accountability:

- Parliament establishes mechanisms for monitoring and evaluating the utilization of funds allocated to counties.
- This ensures transparency, accountability, and prevents misuse of public resources.