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Nairobi, Nakuru and Kiambu winners in new CRA formula

By Roselyne Obala and Everlyne Kwamboka | Jan 20th 2021 | 3 min read
Treasury Cabinet Secretary Ukur Yatani.

Nairobi County will get the largest share of the Sh370 billion equitable share among the country’s 47 devolved units in the next financial year.

According to proposals by the Commission of Revenue Allocation (CRA) that factors in the Sh53.5 billion pledged by President Uhuru Kenyatta after the Senate standoff on the shareable formula, Nairobi’s figures increased by Sh3.3 billion to Sh 15.9 billion.

Apart from Nairobi, Nakuru County’s share will also shoot up to Sh13 billion from the current Sh10.4 billion while Kiambu will get additional Sh2.2 billion up from Sh9.4 billion.

Other winners in the State House brokered deal with senators after those from 22 losing counties refused to give in include Turkana Sh12.6 billion, Kakamega Sh12.4 billion, Kilifi Sh11.7 billion, Mandera Sh11.3 billion, Bungoma Sh10.6 billion and Kitui Sh10.4 billion.

The counties receiving the least are Lamu Sh3 billion, Tharaka/Nithi Sh4.2 billion, Taita Taveta Sh4.8 billion, Isiolo Sh4.7 billion and Elgeyo/Marakwet Sh4.5 billion.

“Following the provisions of Article 216 (1) (a) and Article 203 (1) of the Constitution, and the projected revenue performance in 2021/2022, the commission recommends that out of projected shareable revenue of Sh1.8 trillion and the projected Road Maintenance Levy Fund Sh65.13 billion, the national government be allocated Sh1.4 trillion and county governments Sh370 billion,” explained the commission in a tweet.

Yesterday, CRA released its recommendations for the basis of the equitable share between the two levels of government for the financial year 2021/2022.

West Pokot County is proposed to receive a significant increment from Sh4.9 billion to Sh6.2 billion, with Turkana getting Sh2 billion increment as well as Bungoma and Kitui counties, respectively.

This is the first hurdle in the fight for counties billions, as the Inter-governmental Budget and Economic Council (IBEC) will review the figures and thereafter the National Assembly Budget and Appropriation Committee as proposed in the Division of Revenue Bill, 2021.

President Kenyatta agreed to an increment of Sh53.5 billion with a caveat that it will be based on the revenue projections of the financial year.

During the pledge, after a stormy Senate session that saw three senators arrested, the president said the funds will go towards strengthening devolution.

Even with the coming to effect of the third generation formula that caused an impasse in the Senate last year, no county will lose funds. According to CRA, the baseline for equitable share allocation is Sh316 billion while conditional allocation is Sh17.02 billion to be shared by all counties.

Yesterday, National Treasury Cabinet Secretary (CS) Ukur Yatani confirmed that his ministry supports the recommendations.

Finance committee chair Kirinyaga Senator Charles Kibiru said “if you check carefully, every county is gaining something substantial. It has considered the president’s over Sh50 billion pledge”.

Senate Majority Whip Irungu Kang’ata lauded the recommendations by CRA pegged at the annual amount of Sh370 billion, but demanded accountability.

“It is a step forward. We had expected ‘new money’. However, the release of funds for concurrent functions is positive, because in several instances, including electricity reticulation, primary health, licensing of establishments that sell food to public, and rural roads, there is duplication,” said Laikipia Governor Nderitu Murrithi.

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