Commission on Revenue Allocation wants ‘rich counties’ to fund themselves

The Chairman of the Commission on Revenue Allocation has hinted that in the next 5 years counties that are cities shall not receive any allocation from the national government through the Kenya devolution and resource sharing calculator.Micah Cheserem speaking during a forum that brought together members of constitution commissions and holders of independent offices said that the CRA together with the national treasury are working on the said formula to ensure a implementation of the same.

This comes after Nairobi City County Governor Evans Kidero took it upon himself to lobby for more allocation of funds from the national government.

Kidero argues that his county is home to over 3.1 million Kenyans but gets the lowest allocation of funds as compared to other counties who get quite a substantial amount of money in keeping with the devolution and resource sharing calculator.

It was his push for more cash that prompted Micah Cheserem to spill the beans on how his commission together with the national treasury is working on making sure that counties that are able to sustain themselves do not get even a dime from the national government.

Currently, the parameters used for revenue sharing among counties in Kenya see the greater share of revenue to counties with large population, high poverty rate and big land mass receive more allocations.

This is because all counties are assumed to face some fixed costs of running their local government.

Interesting to note, 25 percent of the revenues are to be shared equally among all counties.

Another 2 percent of revenue is provided as an incentive for fiscal responsibility.