CoG wants more funds disbursed to the counties in 2022/2023 Financial Year
By Winfrey Owino
| October 13th 2021
The Council of Governors says it will oppose plans by the Commission on Revenue Allocation (CRA) to maintain the 2022/2023 county funds at previous year rates.
According to CoG’s Finance and Planning Committee chairperson, Nderitu Mureithi, who is also the Governor of Laikipia County, the CRA’s claims of a depressed economy should not be used to deny counties an increase in allocation.
The CRA had listed, among others, slow economic growth, constrained fiscal framework, need to contain the public debt and the need to finance and provide security for the 2022 General Election as reasons for denying counties an increase in funds.
“We note with concern that CRA’s proposal does not reflect and is not commensurate to the growth of the revenue for the Financial Year 2022/23, which is estimated at Sh2.147 trillion, from the current Financial Year 2021/22 which stands at Sh1.807 trillion,” said Mureithi in a statement to newsrooms.
In the current Financial Year (2021/2022), the 47 counties are collectively receiving Sh370 billion from the National Treasury.
The statement, however, doesn’t state how much the counties want to get in total from the allocation increase that they are proposing.
The governors are arguing that both county and national assemblies passed a Constitutional amendment bill proposing an increase in funds allocated to counties from the current 15 per cent of total revenue collected to 35 per cent.
That would mean the counties are looking at Sh751.45 billion of the Sh2.147 trillion likely to be collected in the 2022/2023 Financial Year.
However, their push could face legal hurdles as BBI, which suggested the increase to county funds allocation, was rejected by both the High Court and the Court of Appeal.
“We propose that CRA reviews their proposals for the equitable share of the revenue for the Financial Year 2022/2023 and increase the allocation to county governments,” CoG said in their statement.
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