Commission to make public criteria on sharing revenue

By STEVE MKAWALE

The Commission on Revenue Allocation (CRA) will on Tuesday release criterion for allocating national revenue between the national and county governments.

Last week the commission made public proposals on how Sh150 billion for counties will be shared.

The CRA chairman Micah Cheserem said five key areas will be considered in sharing out the cash.

He explained that between 10 and 20 per cent would be allocated according to poverty levels and between three and eight per cent according to region size.

"Between 15 per cent and 20 per cent would be shared equally by the 47 counties while between 50 and 70 per cent would be determined by population," he said. On Saturday, Cheserem said the recommended formulae will be in line with the Constitution’s provision to achieve an efficient public sector through fiscal decentralisation that guarantees equity.

The Constitution states the national budget should allocate 15 per cent of revenue directly to the 47 counties and the Revenue Allocation Commission is charged with sharing out these funds.

Preliminary formula

Cheserem said the final revenue allocation method would to be taken to Parliament for approval.

The allocation would be determined by how the national revenue would be shared among the counties. The commission will release their recommendations at their offices at 14 Riverside Drive, Grosvenor Building on February 28.

Reports on Wednesday indicated according to a preliminary formula, population size will also influence allocation with initial estimation showing the factor could account for between half and two-thirds of the amount (about Sh90 billion).

Cheserem said poverty levels will account for between Sh15 billion to Sh30 billion, while between Sh20 billion to Sh30 billion would be shared equally among various counties.

Two other factors, albeit with lower rates, are size of the area and prudent management of funds, which will account for no more than 10 per cent of the cash. Counties are under pressure to raise more revenue if they are to be viable.