CRA releases proposed allocations for National and County governments

Written By: Margaret Kalekye

Several counties have had their county equitable share from the National Government increased. Nairobi will get the highest amount followed by Nakuru County

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

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

“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 Kshs. 1,813.7 billion, and the projected Road Maintenance Levy Fund of Kshs. 65.13 billion, the national government be allocated Kshs. 1,443.7 billion and county governments Kshs. 370 billion” read a statement from CRA.

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Several counties have had their county equitable share from the National Government increased.

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The allocation of Kshs. 370 billion to county governments constitutes the following:

  • A baseline equitable share allocation of Kshs. 316.5 billion
  • Unconditional allocation of Kshs. 17.02 billion to be shared by all counties. These allocations were previously allocated as conditional grants for health, roads and education, and
  • Transfer of Kshs. 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.
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Further, in accordance with the provision of the PFMA 2012 Section 190(b), the Commission presents the determination of each county’s equitable share based on the Third Basis for revenue sharing approved by Parliament in September 2020.

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The commission is mandated to make recommendations concerning the basis for equitable sharing of revenue raised by the national government among county governments.

Nairobi will get the highest amount followed by Nakuru County.

The expected allocations to each county are as shown.

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