The primary purpose of the DARC’s is to review, interrogate, develop and work on technical aspects of the equitable sharing of national revenue and other matters/aspects of the Commission relating to:
i. Recommendations on the basis of equitable sharing of revenue raised by national government between national and county government, Article 216 (1) (a);
ii. Recommendations on the basis of equitable sharing of revenue raised by national government among county governments, Article 216 (1) (b).
iii. Consultations on any Bill that includes provisions dealing with sharing of revenue or any financial matter concerning county governments, Article 205 (1);
iv. Research and policy instruments underpinning all recommendations made by the Commission;
v. Provision of general direction and guidance on commission matters relating to its principal mandates.
Terms of Reference
The DARC shall undertake the following:
i. Annually prepare the Commission recommendation concerning the basis of equitable sharing of revenue raised by national government between national and county governments;
ii. Periodically (every five years) prepare the Commission recommendation on the basis of equitable sharing of revenue raised by national government among county governments;
iii. Annually consider the Bill on Division of Revenue between the national and county governments and make recommendations to the national Assembly and Senate;
iv. Annually consider the Bill on County Allocation of Revenue Bills and make recommendations to the National Assembly and Senate;
v. Provide inputs to technical research papers and presentations developed by the Secretariat;
vi. Provide direction on research on issues that touch on the mandate of the committee on which, an objective technical opinion or recommendation from outside of the Commission would be valuable;
vii. Participate and provide inputs in discussions on areas relevant to inter- governmental transfers;
viii. Provide information to matters related to achieving equity in resource sharing as maybe requested by the commission/ or perhaps other national agencies from time to time.
Composition of DARC
The DARC is composited of seven Commissioners and functionally reports to the full commission on all matters considered from time to time. The Chief Executive Officer may attend the meetings and the Director, Economic Affairs is the Secretary to DARC.
The financial year 2022/23 recommendation on the basis for equitable sharing of revenue between the national and county governments is being prepared against a backdrop of slow economic growth. Gross Domestic Product (GDP) across the world declined in 2020 as a result of the COVID-19 pandemic. World GDP shrank by 3.6 per cent while that of OECD members, Sub-Saharan Africa and Africa Eastern and Southern regions contracted by 4.7, 2.4 and 3.6 per cent respectively. Projections show that despite the Covid-19 pandemic, the global economy and Sub-Saharan Africa are expected to grow at 5.9 and 3.7 per cent respectively in ... Read More
The 2021 Division of Revenue Act allocates the county governments an equitable share of Ksh. 370 billion in the financial year 2021/2022. The allocation is an increase of Ksh.53.5 billion from the Ksh. 316.5 billion allocated to the counties during the 2020/2021 financial year. The Equitable Share allocation to the counties of Ksh. 370 billion for the financial year 2021/22 is equivalent to 27.3 per cent of the last audited accounts (Ksh. 1,358 billion for FY 2016/17) and as approved by Parliament. The allocation, therefore, meets the requirement of Article 203(2) of the Constitution that equitable share allocation to counties should ... Read More
The County Allocation of Revenue Bill, 2021 was read for the first time in the Senate on 4th May 2021. Thereafter, the Bill was committed to the Standing Committee on Finance and Budget for consideration. The Bill is for an Act of Parliament to provide for the equitable allocation of revenue raised nationally among the county governments for the 2021/2022 financial year; the responsibilities of national and county governments pursuant to such allocation; and for connected purposes. The principal objective of this Bill is to make provision for the allocation of revenue raised nationally among the county governments for the ... Read More
The Senate on 13th April, 2021 passed the Division of Revenue Bill, 2021. The Bill comprises the following allocations: Allocation to National Government– Ksh.1,398 trillion, Allocation to County Governments is Ksh. 370billion, and the Equalisation Fund Ksh. 6,825 billion. However, the Senate, in line with the ruling of Petition 252 of 2016, approved removal of all conditional grants from the DoRB. Consequently: leasing of medical equipment, supplement for construction of county Hqs and Loans and Grants from donors, all amounting to Ksh.39.9 billion, have been removed from the DORB 2021 as passed by the Senate. The Senate resolved that the ... Read More
The Commission participated in the Intergovernmental Budget and Economic Council (IBEC) meeting where an equitable share allocation of Sh370 billion to devolved units was agreed. Counties will now receive a total of Sh409.88 billion in the next financial year. The figure comprises of an equitable share of Sh370 billion, conditional allocations of Sh7.53 billion and proceeds of loans and grants from development partners of Sh32.34 billion. The Commission had recommended in its vertical recommendation that the national government be allocated Kshs. 1,443.7 billion and county governments Kshs. 370 billion. Read the full CRA recommendation here: https://cra.go.ke/2021/01/20/cra-submits-recommendation-for-sharing-of-revenue-between-national-and-county-governments-for-fy2021-2022/ ... Read More
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 ... Read More
The third basis for equitable sharing of revenue among county governments (popularly known as the formula) is based on the provision of Article 217 of the Constitution, read together with Article 216 and the Fifth Schedule Section 16. The role of the Commission is to prepare a recommendation and submit to Parliament in accordance with the provisions of Article 217. The Commission submitted its recommendation in April 2019. The Senate made a determination and approved a revised Third Basis for revenue sharing among the counties on 17th September 2020 which was unanimously approved by the National Assembly on 24th September, ... Read More
THE THIRD BASIS FOR REVENUE SHARING AMONG COUNTY GOVERNMENTS In accordance with the requirements of Article 216 (1) of the Constitution of Kenya, the Commission on Revenue Allocation presents the recommendation on the third basis for equitable sharing of revenue among county governments. The basis is expected to be used for sharing of revenues for financial years 2019/20 to 2023/24.This recommendation builds on lessons learnt from a comprehensive review of the second basis, a comparative analysis of financing transfer systems from other countries, and extensive consultations with national government, county governments, public finance experts, and the public.This recommendation seeks to ... Read More
Vertical Recommendations The core mandate of the Commission on Revenue Allocation is to recommend the basis for equitable sharing of revenue raised nationally between the national and the county governments, and among the county governments.The vertical recommendations refer to the submissions made by the Commission on the basis for equitable sharing of revenue raised nationally between the national and the county governments. Below is a list of the recommendations made by the Commission from financial year 2013/2014 to 2020/2021, click to download:Vertical recommendations for FY 2020-2021Vertical recommendations for FY 2019-2020Vertical recommendations for FY 2018-2019Vertical recommendations for FY 2017-2018Vertical recommendations for FY 2016-2017Vertical ... Read More
RECOMMENDATION CONCERNING THE THIRD BASIS FOR REVENUE SHARING AMONG COUNTY GOVERNMENTS In accordance with the requirements of Article 216 (1) of the Constitution of Kenya, the Commission on Revenue Allocation presents the recommendation on the third basis for equitable sharing of revenue among county governments. The basis is expected to be used for sharing of revenues for financial years 2019/20 to 2023/24.This recommendation builds on lessons learnt from a comprehensive review of the second basis, a comparative analysis of financing transfer systems from other countries, and extensive consultations with national government, county governments, public finance experts, and the public.This recommendation ... Read More