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CRA releases proposed revenue allocations for national and county governments

Commission for Revenue Allocation Chairperson Jane Kiringai.

The Commission on Revenue Allocation (CRA) on Tuesday released recommendations for sharing of revenue between national and county governments for the 2021/2022 financial year.

CRA said the submission was delayed by 15 days to enable the Commission build consensus with Parliament, the Council of Governors and the National Treasury.

The Commission has recommended that out of projected shareable revenue of Sh1.813 trillion, and the projected Road Maintenance Levy Fund of Sh65.13 billion, the national government be allocated Sh1.443 trillion and the county governments Sh370 billion. This is pursuant to the provisions of Articles 216(1)(a) and 203(1) of the constitution and the projected revenue performance for the financial year 2021/22.

The allocation of Sh370 billion to county governments constitutes:

1. A baseline equitable share allocation of Sh316.5 billion.

2. Unconditional allocation of Sh17.02 billion to be shared by all counties. These allocations were previously allocated as conditional grants for health, roads and education.

3.Transfer of 36.48 billion to counties from Ministries, Departments and Agencies in the national government for performance of concurrent functions in the areas of health, crop development, livestock, fisheries, water, irrigation and sanitation.

CRA's determination of each county's equitable share.

CRA also presented the determination of each county's equitable share based on the Third Basis for revenue sharing approved by Parliament in September 2020.