CRA tables new revenue sharing proposal

 

Nairobi, Nakuru  Turkana and Kakamega will receive the lion’s share of the Sh370billion allocated to counties in the 2021-22 budget should Parliament adopt a proposal by the Commission on Revenue Allocation.

If approved Nairobi will get 19.1 billion, Nakuru Sh12.9billion, Turkana Sh123.5billion while Kakamega will receive Sh12.3billion.

On the other hand Lamu, Tharaka Nithi, Elgeyo Marakwet, Isiolo will receive the least allocations, getting Sh3.09billion, Sh4.2billion, Sh4.58billion and Sh4.7billon respectively.

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

The allocation of Sh370 billion to county governments constitutes a baseline equitable share allocation of Sh316.5 billion.

There is also an unconditional allocation of Sh17.02 billion to be shared by all counties.  This was previously allocated as conditional grants for health, roads and education.

The allocation also constitutes of a transfer of Sh36.48billion 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.

“Following the provisions of Article 216(1)(a) and Article 203(1) of the Constitution, and the projected revenue performance in 2021/22, the commission recommends that; out of projected shareable revenue of Sh1,813.7 billion, and the projected road maintenance levy fund of Sh65.13billion, the national government be allocated Sh1,443.7billion and county governments Sh370 billion,”read a statement from CRA.

This it said is in accordance with the provision of the Public Finance Management Act 2012 , which empowers it to present the determination of each county's equitable share based on the Third Basis for revenue sharing approved by Parliament in September 2020.