Prime News Kenya

Expert Comment: Why CRA pushed so hard for Sh335 billion

Posted By : Justice Bimpeh

When we – Commission on Revenue Allocation (CRA) - first submitted the report last year, we proposed that no county should lose up to five percent of the past allocation.

That is why when we submitted it, we were requesting that the equitable share to counties be increased to Sh335 billion. I hope Kenyans remember the debate on Sh335 billion and part of that money was to be set aside to cushion all the counties that were losing.

That was our proposal as Commission on Revenue Allocation, that the revenue sharing formula will be implemented in a phased way to ensure that services at the counties are not disrupted in any way.

The challenge is that – you remember – the counties did not get Sh335 billion and secondly they did not table the formula at that time.

That is why we pushed so hard for a Sh335 billion because we knew that when you apply new data some counties like Mandera will lose a lot of money which we also felt was not fair.

That has been the message that we have been telling the Senate, unless you have additional money to give to the losers it becomes a zero sum game. Because there is no way you can share same amount of money differently when there is new data unless you have more money to cushion those that are losing.

That has really been our message for the longest time. We knew that you will never end a stalemate unless you provide more money.

On the Sh 50 billion promised by President Uhuru Kenyatta to the Council of Governors, for us we always make vertical recommendation by December 30 every year so we will take it in that spirit.

This year in December we will make recommendation for how much counties will get next year that is where we will take the conversation (Sh 50 billion).

We also want to see a written document; you know governments work on authentic reports.

However, the stalemate over the counties revenue formula did not have to take this long.

Commission on Revenue Allocation chairperson spoke to the Star

Source : Star Media

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