Blow to governors as CRA retains revenue share at Sh370 billion

Wednesday, November 3rd, 2021 00:00 |
Commission for Revenue Allocation chairperson Jane Kiringai during the release of the report in Nairobi, yesterday. Photo/PD/Benard Orwongo

A commission charged with the responsibility of allocating funds to the national government and county governments has recommended that counties be allocated Sh370 billion for the financial year 2022/23, the same amount as the current financial year.

Commission for Revenue Allocation (CRA) in its latest report on the equitable sharing of revenue raised by the national government between the National and County Governments and among the County Governments said that devolved units’ own-source revenue collection has been falling due to the Covid-19 pandemic that broke out last year.

Yesterday, CRA chairperson Dr Jane Kiringai  while releasing the report said that the allocations were informed by slow economic growth, a constrained fiscal framework, the need to contain public debt, and the need to fund and provide security for the 2022 elections.

The commission recommends based on a revenue projection of Sh2.14 trillion for the financial year 2022/23 and that the National government receives Sh1.76 trillion while the County governments pocket Sh370 billion and an  Equalisation fund of Sh6.8 billion.

This means that Nairobi will receive Sh19.2 billion, followed by Nakuru Sh13 billion, Turkana Sh12.6 billion, Kakamega Sh12.3 billion, Kiambu Sh11.7 billion and Kilifi Sh11.6 billion

Not tenable 

Others are Mandera Sh11.1 billion, Bungoma Sh10.6 billion and Kitui Sh10.3 billion while Meru will get Sh9.5 billion, Wajir Sh9.4 billion, Machakos Sh9.1 billion and Kisii Sh8.88 billion among others.

Lamu will get the least share of Sh3.1billion, Tharaka Nithi Sh4.2 billion, Elgeyo Marakwet Sh4.6 billion, Isiolo Sh4.7 billion and Taita Taveta Sh4.8 billion.

However, the Council of Governors (CoG) has rejected the proposals by the CRA. According to the governors, the reasons provided by the CRA do not hold water.

This is after counties secured Sh370 billion in the current fiscal year, up from Sh316.5 billion after a protracted debate in the Senate.

The governors had wanted the allocation be increased from the current Sh370 billion to Sh381 billion in the 2022/23 financial year.

However, Kiringai argued that stretching the caps to accommodate the request by counties would mean more borrowing and budget cuts for state agencies.

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