Counties that will miss out on extra cash

Chairman of Commission on Revenue Allocation(CRA) Micah Cheserem(right) and CRC Chief Excutive George Ooko addressing the press on 2016-2017 county Revenue allocation at a Nairobi hotel BEVERLYNE MUSILI

Counties that collect less revenue or fail to document their collections are likely to miss out on additional funds in a new formula. The revenue allocation formula is set to be approved by the Senate.

Among counties that are likely to miss out on a reward under the Fiscal Responsibility factor are Busia, Vihiga, Samburu, Mandera and Turkana, going by past performance on revenue collection.

But those that collect more revenue will be rewarded with additional funds calculated at a percentage based on additional revenue they collect.

Counties that are likely to benefit include Mombasa (0.106 per cent), Kajiado (0.062), Kiambu (0.068), Nairobi (0.060), and Nyeri (0.46) among others. This is based on additional revenues recorded and captured by the Controller of Budget in records.

"County governments receive transfers, collect and utilise public resources. Fiscal responsibility entails implementation of sound economic and budgetary practices to ensure citizens get value for money," said Commission on Revenue Allocation Chair Micah Cheserem.

He said the first formula allocated two per cent of the shareable revenue equally across all counties for the last four financial years.

"But under the new formula, fiscal responsibility is going to be used as an incentive to encourage counties increase their revenue base," said Cheserem.