CRA shifts from counties to sub-locations in equalisation fund distribution

Dr Jane Kiringai,Commission Revenue Allocation (CRA) Chairperson

Turkana and West Pokot will receive the highest share of Equalisation Fund as outlined in the second policy that seeks to use sub-locations instead of counties in identifying marginalised areas.

The two counties will receive rations of 11.4 per cent and 10.2 per cent of the total allocation respectively, in an approach that is expected to improve access to education, water, sanitation and electricity.

Allocations to the Equalisation Fund are based on 0.5 per cent of all the revenue collected by the national government each year, calculated on the basis of the most recent audited accounts of revenue received as approved by the National Assembly.

According to the Commission on Revenue Authority (CRA), the allocation is accumulative for 2017-2018 and 2018- 2019 financial year to a total of Sh7.7 billion and 4.7 billion respectively.

This means that marginalised counties will share Sh12.4 billion in total.

Narok is third with 7.7 per cent followed closely by Mandera with 7.5 per cent. Wajir will receive 7.3 per cent while Samburu and Garissa will get 6.5 per cent and 6.3 per cent respectively.

Others are Baringo which will receive 5.9 per cent, Kilifi 5.4 per cent while Marsabit and Tana River will get 4.7 per cent and 4.4 per cent respectively.

According to CRA, out of 1,424 sub-locations that will share 77.3 per cent of the fund, 1,010 are in 11 counties and have been identified as marginalised.

Twenty-three other counties expected to share 22.7 per cent of the total resources include Kajiado, Kitui, Kwale, Migori, Isiolo, Homa Bay, Laikipia, Nandi, Elgeyo Marakwet, Kericho, Bungoma, Lamu, Tharaka Nithi, Siaya, Meru, Kisumu, Bomet, Busia, Taita Taveta, Machakos, Trans Nzoia, Nakuru and Murang’a.

“The first policy lapsed in the FY 2016/17. The current document recognises that there are pockets of extreme marginalisation even in prosperous places. Therefore, this policy adopted a new approach to identify deserving areas,” said Dr Jane Kiringai, the commission chairperson.

In the policy, the commission has moved beyond identifying marginalised counties and instead, determined specific areas using sub-locations where marginalised communities live, saying the  approach is expected to ensure that resources meant to improve services in areas lagging behind are properly targetted for the realisation of maximum impact.

“The fund consists of 0.5 per cent of all revenue collected by the national government and seeks to improve the livelihoods by bringing them to the levels generally enjoyed by other regions,” she added.

According to CRA, 1,667 areas were identified as lacking improved sanitation. Turkana County had the highest number of areas (142) that have not witnessed improved sanitation, West Pokot had 130, Baringo 122, Wajir 96, Narok 93, Mandera 88, Samburu 86, Kilifi 81 and Garissa 79.

In 2013, only 14 counties were identified as marginalised and benefitted from Sh11.8 billion from the Equalisation Fund. They were Turkana, Mandera, Wajir, Marsabit, Samburu, West Pokot, Tana River, Narok, Kwale, Garissa, Kilifi, Taita Taveta, Isiolo and Lamu.