CRA Submits Recommendation for Sharing of Revenue Between National and County Governments for FY2021/2022

The Commission on Revenue Allocation has released the recommendation on the basis for equitable sharing of revenue between national and county governments for the financial year 2021/2022. The submission was delayed by 15 days to enable the Commission 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.

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

316. A baseline equitable share allocation of Kshs. 316.5 billion,
317. 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.

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. The expected allocations to each county are as shown in Table 1:

Table 1: Allocations to Each county for FY 2020/21 and 2021/22

(Kshs. Millions)