Counties have received the second tranche of Sh738 million performance-based conditional grants this financial year.
Devolution Principal Secretary Nelson Marwa said the money was transferred to all 47 counties by the national government through the Kenya Devolution Support Programme.
The programme, officially launched last month by President Uhuru Kenyatta in Kakamega, is a four-year $200 million (Sh20.3 million) plan financed by the World Bank to support counties. The counties only access the funds after meeting certain targets.
The disbursement is provided for in the third schedule of the 2017 County Allocation of Revenue Act as per the financing agreement between Kenya and the World Bank.
In a statement, Mr Marwa said the conditional grant will be used exclusively to help counties build and improve systems that support their staff and delivery of services as provided for in the programme and the submitted work plans by respective counties.
“The financial year 2018/19 capacity building grants will be based on execution of at least 75 per cent of the 2017/18 county capacity building plans and the submission of the 2018/19 plans to the programme’s secretariat before June 30, 2018,” he said in the government publication MyGov.
“In addition, counties that meet the agreed minimum performance conditions will be eligible for investment grants that can be used for county development projects,” the PS added.
In the latest allocation, Nairobi got the lion’s share of the monies at Sh27.6 million followed by Kilifi (Sh21.9 million), Kiambu (Sh21.2 million), Kakamega (Sh20.1 million) and Nakuru (Sh19.7) million.
Through the monies, the counties are expected to better their human resource and performance management, intergovernmental relations as well as civic education and public participation.
Other key areas targeted are public finance management and the planning, monitoring and evaluation of county development plans.
The institutions involved in the implementation of the plan are the Devolution and Public Service ministries, Treasury, county governments, Auditor-General and Kenya School of Government.
On Wednesday, Devolution Cabinet Secretary Eugene Wamalwa said the government would be strict in how funds from development partners are utilised by counties.
“It is important that there is good governance, accountability and transparency in how these funds are spent,” he said in Kiambu.