The Commission on Revenue Allocation (CRA) is mandated to make recommendations for equitable sharing of revenue raised by the national government. LUKE ANAMI sought to find out the views of CRA Chairman Micah Cheserem on the new budget making process and what role the commission will play in a devolved government.

QUESTION: How is the new budget making different from previous ones?

ANSWER: First, there is a requirement for public participation. To meet this requirement, the Treasury and the Budget Committee of Parliament visited several counties to obtain public views on the 2012/2013 Budget. The second important difference is that it is the National Assembly that approves the Budget and not the Executive.

Q: What role will CRA be playing in budget allocation under a devolved government?

A:The commission’s principal mandate is to make recommendations on sharing of revenue collected nationally between the national and county governments. The commission is also required to make recommendations concerning financing and financial management by county governments. It is also required to make recommendations to Parliament on the appropriations of money from the Equalisation Fund.

Q: The Finance minister has indicated there is no money for devolution, what is your take?

A: We are yet to see Budget allocations. As you know, county governments would come into being immediately after the elections. Assuming the elections are held on March 4, next year, then the local governments will need to be allocated money for four months, that is, March to June 2013. The exact amount of money that needs to be set aside is not known yet.

This will wait until the costing of functions to be devolved in 2012-2013, an exercise that will be co-coordinated by the soon to be formed Transitional Authority.

Q: How can the Government cut down expenditure to save money for devolution?

A: The Government will in future need to make major reductions in expenditure in order to save money for the devolved system of government. The savings will come from:

  • Reduction of ministries from the current 42 to maximum of 22 set out in the new Constitution.
  • Reduction in salaries of elected and appointed public officers.
  • Rationalisation of national institutions.
  • Employing great measure of austerity in the expenditure of public money.
  • Election and appointment of persons of high integrity will also mean reduced levels of corruption, which is known to cost Kenyan taxpayers lots of money.

Q: From the public input on the allocation formula, which views can be incorporated in the formula?

A: The commission has dispatched teams to all counties to seek public views on the formula the commission has proposed on the sharing of revenue. The teams will complete the exercise in the third week of June. We will be able to discuss and agree, as a commission, on the views to incorporate in a revised formula.

We will be able to answer your question in the last week of this month when the reports from the field have been analysed.

Q: How has CRA prepared counties to handle the allocations?

A: We in the commission, acting in concert with the relevant arms of government, other commissions, the Transitional Authority and other stakeholders will be working to ensure that counties are able to come into operation and handle money allocations prudently. Civic education is also necessary to ensure people understand what it involves to allocate resources equitably.