CRA publishes criteria for county revenue

April 27, 2012 8:19 am


The commission's proposal for county governments is more than the Sh160 billion approved by the Cabinet last week/CFM
NAIROBI, Kenya Apr 27 – The Commission on Revenue Allocation (CRA) on Thursday recommended that county governments should receive an allocation Sh203 billion while Sh407 billion be given to the national government.

The commission’s proposal for county governments is more than the Sh160 billion approved by the Cabinet last week for the next financial year.

Speaking during the launch of the share formula between the national government and the 47 counties, Commission chairman Micah Cheserem said they were working with 2011/12 audited revenue but they expected the government to collect revenue of Sh800 billion in 2012/13.

He invited public discourse over the formula before it is forwarded to Parliament for debate and approval adding that it will be in place effectively for four months in the event of a March poll.

“If elections are held on March 4, 2013, the earliest the government will be in place will be in April next year. In all likelihood, the 2012-2013 Budget will be run by the national government to the tail-end,” he said.

According to the formula, 60 percent of the allocation will based on population size, 20 percent on basic equal share, 12 percent on poverty level rate, 6 percent on the size of land and 2 percent on fiscal responsibility exercised by the county. The remaining 20 per cent will be shared equally among the 47 counties.

Director for Research Moses Sichei explained that the formula which can be amended after three years is aimed at ensuring equity in resource distribution and sealing the disparities witnessed in allocations.

Top beneficiaries in the allocations include Nairobi Sh11.7 billion, Nakuru Sh6.9billion, Kiambu Sh6.5 billion, Kakamega Sh7.3 billion, Bungoma Sh7.2 billion, Turkana Sh5.7 billion, Kisii Sh5.5 billion, Kisumu Sh4.6 billion, Kilifi and Kisii Sh5.5 billion each, Wajir Sh4.7 billion and Uasin Gishu Sh4.3 billion.

Lamu, which is the smallest of the 47 counties in the country, will receive Sh1.4 billion.

At the tail-end of the disbursements are Isiolo Sh1.9 billion, Samburu Sh2.2 billion, Taita Taveta and Tharaka Nithi Sh2.3 billion each while Elgeyo Marakwet was allocated Sh2.4 billion, Laikipia and Tana River Sh2.6 billion each.

Parliament will have to approve two funding Bills, the Division of Revenue Bill which deals with sharing of revenues between the national and county governments and the County Allocation of Revenue Bill which relates to the sharing of revenue among the counties, at least two months before the end of each financial year.

The commission’s technical committee is still working on the criteria on distribution of the equalization funds, but commissioner Raphael Munavu urged that the county government must be allowed to prioritize their own development projects with special preference to water, education and health services.

The commission recommended that the Equalisation Fund (0.5 per cent of the national Budget) be disbursed from the 2013-2014 financial year when county governments will be functioning.

It also proposed that the funds set aside for the 2011-2012 and 2012-2013 financial years be rolled over to the 2013-2014 financial year.

The sectors to be targeted for improvement are water, education, health services, energy and rural access roads.


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