Commission proposes more powers to decide sharing of revenue to counties

Commission on Revenue Allocation Chairman Micah Cheserem. Commission on Revenue Allocation (CRA) wants the law changed so that a formula for sharing revenue it recommended is used, unless two thirds of Senate and or National Assembly reject it. (PHOTO: BEVERLYNE MUSILI/ STANDARD)

Commission on Revenue Allocation (CRA) wants the law changed so that a formula for sharing revenue it recommended is used, unless two thirds of Senate and or National Assembly reject it.

CRA Chairman Micah Cheserem while calling on Parliament to begin the process of recruiting new commissioners as their terms come to an end this year, further called for the restructuring of the Provincial Administration to allow more resources to be channelled to the counties. Here are excerpts.

What was the biggest obstacle you encountered while setting up the commission?

It was lack of understanding of the role of the commission and its relevance. Consequently, the team faced some resistance in undertaking its mandate.

CRA allocates revenue to both national government and counties. Who deserves more funds and why?

Funds follow functions. While national government has more functions to undertake, county governments still require adequate funding. More money needs to to go to counties for construction of roads since they now have majority of the roads.

Governors have argued that the 15 per cent requirement in revenue allocation is not enough. They have suggested 40 per cent. What does CRA recommend?

We wanted counties to get 35 per cent of the money collected by national government in 2016-2017. However, counties were allocated 30 per cent which is low. CRA recommends the restructuring of the parallel system where we have provincial administration be undertaken so as to free up more resources to counties. There is also need for austerity measures to curb wastage at all levels of government as well as retrenchment in order to reduce the wage bill. Representation also needs to be reviewed as the number of the Members of Parliament is huge. The requirement to have nominated women to meet the gender rule also has increased the wage bill. The above need to be addressed so as to ensure there are adequate funds to offer quality services to the public.

CRA has been criticised for failing to control county expenditure. Senators claim you favour the governors and failed to police revenue usage. Comment.

CRA has sought to contribute to expenditure management of counties by introducing and recommending ceilings. We have cautioned counties against wastage of funds. However, the commission has no executive powers to manage monies in counties. Article 96 of the Constitution places responsibility of exercising oversight to the Senate.

What would you like improved or changed in the Constitution or other laws to enable CRA perform better?

The law should be changed so that the formula for sharing revenue recommended by CRA is used unless two thirds of Senate and or National Assembly reject it. Further CRA should have more powers to share revenue and its recommendations should not be interfered with.

Should CRA be given executive powers to oversee expenditure by governors?

No. CRA should not get such powers. The Constitution recognises the right of communities to manage their own affairs and enhance the participation of the people in making decisions on matters affecting them. Counties should thus prepare their own budgets and allocate funds to expenses based on priority.

The Senate has been criticised for failing to perform its oversight role. Any suggestions on how to help Senators perform better?

The Senate is mandated to protect the interests of counties. In order to do so, Senate needs to have a strong technical arm comprising of various professions such as accountants, lawyers, economists and planners among others. These staff will advise on various technical issues affecting counties thus informing decision making by Senate.

Supremacy wars between senators and governors should be addressed. I call upon the many seasoned senators to take the lead in creating harmony between themselves and governors.

Treasury still controls how and when funds are released to counties. How has disbursement of funds affected counties?

It has resulted in disruptions such as staff strikes, stalled development projects, delayed payment to suppliers and counties running overdrafts. I acknowledge that despite the many commitments that national government has, in last three years National Treasury has paid all monies to counties by the end of each financial year.

While MPs check the presidency, MCAs are expected to do the same for governors. But it has not effectively worked. Any suggestions to improve the performance of MCAs?

The capacity level of MCAs has not been adequate, as such the education levels. Professions such as teachers, engineers, accountants among others should become MCAs. More educated women also need to be elected. These will improve the quality of elected MCAs. Further, capacity building for MCAs further needs to be undertaken.

What needs to be done to ensure money is spent for purposes it was allocated for?

In addition to ceilings that need to be adhered to, governors should have the final say on budgets once MCAs have given their input. This is because the development agenda in counties is set and championed by the governor.

What were your biggest challenges in running CRA?

Administrative obstacles such as acquisition of offices, recruitment and employing new staff were also experienced and resolved.

What are the successes of CRA under your leadership?

The commissioners and I in conjunction with the secretariat are grateful for having been given the opportunity to serve the country. Some of our achievements include setting up the commission, ensuring that resources are allocated to counties resulting in successful implementation of devolution. There is now visible development in all counties and especially those that were marginalized. Wastage in counties has been curbed especially with the introduction of ceilings.

When you exit, the President could appoint a political figure. Your comment?

The President of Kenya is a wise person. I am sure he will appoint an independent person who will have no political inclinations and who will drive CRA to even greater heights.

Disharmony among Treasury, Governors, Executive, CoG, Senate, MCA’s has slowed down devolution. How can they work together?

The President through the Summit should seek to address issues pertaining to national and county governors to bring harmony. The President should also promote dialogue between governors, senators and MCA’s to address any differences.

Does devolution have a future?

Devolution is here to stay. All parties should adhere to the Constitution. Governors should continue to champion the development agenda and be held responsible. National Treasury should release funds to counties on time while the Senate should conduct its oversight role. Devolution is the centerpiece of our Constitution and I believe those who will come after us will do even better.