COMMISSION ON REVENUE ALLOCATION

Promoting an equitable society

GOVERNORS CHALLENGE: FUNDING THE COUNTY RESIDENTS EXPECTATIONS

PRESENTATION TO GOVERNORS AND DEPUTY GOVERNORS ON 4TH APRIL 2013 BY MICAH CHESEREM, CHAIRMAN, CRA AND GEORGE OOKO, CEO, CRA

COMMISSION ON REVENUE ALLOCATION

CRA FUNCTIONS AS PER THE CONSTITUTION
1. RECOMMEND THE BASIS OF EQUITABLE SHARING OF REVENUE RAISED NATIONALLY BETWEEN NATIONAL AND COUNTY GOVERNMENTS (ART.216)(1)(B). 2. RECOMMEND THE BASIS OF EQUITABLE SHARING OF REVENUE RAISED BY NATIONAL GOVERNMENT AMONG COUNTY GOVERNMENTS (ART.216)(1)(B). 3. RECOMMEND ON MATTERS CONCERNING THE FINANCING OF COUNTY

GOVERNMENTS (ART.216)(2).
4. RECOMMEND ON MATTERS CONCERNING FINANCIAL MANAGEMENT OF COUNTY GOVERNMENTS (ART. 216) (2)

COMMISSION ON REVENUE ALLOCATION

CRA FUNCTIONS AS PER THE CONSTITUTION
5. DEFINE AND ENHANCE REVENUE SOURCES OF NATIONAL GOVERNMENT (ART. 216) (3) (B). 6. DEFINE AND ENHANCE REVENUE SOURCES OF NATIONAL AND COUNTY GOVERNMENTS (ART. 216) (3) (B) 7. ENCOURAGE FISCAL RESPONSIBILITY BY NATIONAL GOVERNMENT (ART. 216) (3) (C) 8. ENCOURAGE FISCAL RESPONSIBILITY BY COUNTY GOVERNMENTS (ART. 216) (3) (C)

COMMISSION ON REVENUE ALLOCATION

CRA FUNCTIONS AS PER THE CONSTITUTION CONT.
9. BE CONSULTED AND RECOMMENDATIONS BE CONSIDERED BEFORE
PARLIAMENT PASSES ANY BILL APPROPRIATING MONEY OUT OF THE EQUALIZATION FUND (ART. 204) (4) 10 BE CONSULTED ON ANY BILL THAT INCLUDES PROVISIONS DEALING WITH SHARING OF REVENUE (ART. 205) 11. BE CONSULTED ON ANY BILL THAT INCLUDES PROVISIONS DEALING WITH ANY FINANCIAL MATTER CONCERNING COUNTY GOVERNMENTS (ARTICLE. 205)
12. PUBLISH AND REVIEW THE POLICY THAT SETS OUT CRITERIA FOR IDENTIFYING

MARGINALISED AREAS IN ACTUALIZATION OF THE EQUALIZATION FUND

(ART. 206)
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CRA FUNCTIONS AS PER THE CONSTITUTION CONT.
13. A CRA COMMISSIONER TO PARTICIPATE, BUT SHALL NOT VOTE, IN THE

MEETINGS OF THE COMMISSION FOR IMPLEMENTATION OF CONSTITUTION

(SCHEDULE 6 PART 5 (5) 14. CRA SHALL BE CONSULTED AND THEIR RECOMMENDATIONS CONSIDERED BY PARLIAMENT FOR ALL LAWS BEING ENACTED RELATING TO DEVOLVED GOVERNMENT (SCHEDULE 6 PART 14 (1) 15. MAKE RECOMMENDATIONS ON THE AMOUNTS EARMARKED FOR SPECIFIC PURPOSES SUCH AS THE CONSTITUTENCY DEVELOPMENT FUND, AMONG

OTHERS
NOTE: RECOMMENDATIONS ARE SUBMITTED TO SENATE, THE NATIONAL ASSEMBLY, THE NATIONAL EXECUTIVE, COUNTY ASSEMBLY AND COUNTY EXECUTIVE (ART. 216)
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WAR WAS DECLARED ON POVERTY, IGNORANCE AND DISEASE AT KENYAS INDEPENDENCE IN 1963
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KENYA: A LAND OF PARADOX

A RESOURCE RICH COUNTRY BUT

WITH LOTS OF POOR PEOPLE

COMMISSION ON REVENUE ALLOCATION KENYAS NEW SYSTEM OF DEVOLVED GOVERNMENT

NATIONAL ASSEMBLY SENATE JUDICIARY
COUNTY GOVERNMENTS

NATIONAL GOVERNMENT
PRESIDENT

COUNTY ASSEMBLY

THE CABINET

PEOPLE OF KENYA

GOVERNOR

COUNTY EXECUTIVES

NATIONAL

CIVIL SERVICE
CONSTITUTIONAL OFFICES CONSTITUTIONAL COMMISSIONS

COUNTY CIVIL SERVICE

RED NEW POLITICAL AND ADMINISTRATIVE UNITS BLACK EXISTING GOVERNMENT ORGANS

COMMISSION ON REVENUE ALLOCATION

COUNTY GOVERNORS KEY STAKEHOLDERS

COUNTY RESIDENTS
MEDIA CIVIL SOCIETY COUNTY EXECUTIVE

DEVELOPMENT PARTNERS OTHER COUNTIES GOVERNORS SUPPLIERS GOODS & SERVICES CONST. COMMISSIONS & IND. OFFICES

COUNTY GOVERNOR DEPUTY GOVERNOR

COUTY CIVIL SERVANTS COUNTY ASSEMBLY

SENATE
COUNTY SENATOR

NATIONAL EXEC. PRESIDENT CABINET

NAT. ASSEMBLY COUNTY WOMEN REP COUNTY MPS

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KENYAN SUGAR INDUSTRY IS A FAILURE DESPITE TARIFF PROTECTIONS

COMMISSION ON REVENUE ALLOCATION

KENYAN HORTICULTURE SECTOR IS WORLD CLASS

10

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KENYAS LIVESTOCK POTENTIAL REMAINS UNTAPPED

11

COMMISSION ON REVENUE ALLOCATION

THE STANDARDS OF OUR PRODUCE MARKETS NEED TO BE RAISED

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MPESA: A KENYAN ICT SUCCESS STORY

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THERE MUST BE A BETTER WAY OF PLOUGHING

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THERE IS A BETTER WAY OF PLOUGHING IN KENYA

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COMMISSION ON REVENUE ALLOCATION

IMPROVING AGRICULTURAL PRODUCTIVITY WILL BE A PRIORITY

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CROP PRODUCTIVITY WILL BE RAISED BY INVESTING IN IRRIGATION

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COMMISSION ON REVENUE ALLOCATION

WATER HARVESTING IS NOT ROCKET SCIENCE

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WE MUST IMPROVE ON THE SORRY STATE OF OUR HEALTH FACILITIES

a.

.
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PERSONNEL IN OUR PUBLIC HEALTH FACILITIES NEED TO RAISE THEIR STANDARDS OF SERVICE DELIVERY TO PATIENTS
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A POOR BEGINNING FOR THESE KENYAN YOUTH

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COMMISSION ON REVENUE ALLOCATION

COUNTIES WILL NEED TO IMPROVE ON WATER FACILITIES

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COMMISSION ON REVENUE ALLOCATION

THE IS NEED TO ADDRESS MASSIVE YOUTH UNEMPLOYMENT

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COMMISSION ON REVENUE ALLOCATION

IMPASSABLE COUNTY ROADS HINDER ECONOMIC GROWTH

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COMMISSION ON REVENUE ALLOCATION

UNPLANNED URBAN SETTLEMENT EVIDENCE OF LEADERSHIP FAILURE

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COMMISSION ON REVENUE ALLOCATION

URBAN DECAY MUST BE REVERSED

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COMMISSION ON REVENUE ALLOCATION

COUNTY GOVERNMENTS NEED TO PROMOTE A CULTURE OF DISCIPLINE IN THE SOCIETY

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OPENNESS, ACCOUNTABILITY AND PUBLIC PARTICIPATION IN ALL FINANCIAL MATTERS

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COMMISSION ON REVENUE ALLOCATION

REVENUE ALLOCATION TO COUNTY GOVERNMENTS 2012/2013 AND 2013/2014

COMMISSION ON REVENUE ALLOCATION

FORMULA FOR SHARING REVENUE AMONG COUNTY GOVERNMENTS Population 45% Basic Equal Share 25%

Poverty 20%
Area 8% Fiscal Fiscal Responsibility 2% Responsibi lity 2%
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45%

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COUNTY GOVERNMENTS ALLOCATIONS FOR 4 MONTHS (MARCH-JUNE 2013)

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COMMISSION ON REVENUE ALLOCATION

COUNTY ALLOCATIONS
Total Revenue Sharable (2012 2013) County Revenue Allocation 33% - 610B - 203B

15% Minimum of Total Sharable Revenue

4 Months Allocation (of 91B) (March June 2013)

91B

- 30.4B 9.8B

Treasury Allocation 4 months (March June 2013)

SHORTFALL

- 20.6B

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COMMISSION ON REVENUE ALLOCATION

ALLOCATIONS FOR MARCH-JUNE 2013 USING FORMULA
COUNTY ALLOCATION BY TREASURY(KSHS.)

NAIROBI CITY

489,475,361

2
3 4

TURKANA
MANDERA KAKAMEGA

394,658,996
337,287,652 335,499,721

5
6 7 8

NAKURU
BUNGOMA KIAMBU KILIFI
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305,675,443
289,081,500 281,090,212 280,249,475

COMMISSION ON REVENUE ALLOCATION

ALLOCATIONS FOR MARCH-JUNE 2013 USING FORMULA
COUNTY ALLOCATION BY TREASURY(KSHS.)

9 11

KITUI KISII

273,698,415

10 WAJIR
12 MACHAKOS

272,397,836
267,158,569 254,919,485

13 MERU
14 MAKUENI 15 MIGORI 16 GARISSA
35

244,560,609
224,828,421 219,826,248 217,372,035

COMMISSION ON REVENUE ALLOCATION

ALLOCATIONS FOR MARCH-JUNE 2013 USING FORMULA
COUNTY ALLOCATION BY TREASURY(KSHS.)

17 KISUMU

213,966,548

18 HOMA-BAY
19 BUSIA 20 MURANG'A

212,222,588
204,889,393 201,716,356

21 NAROK
22 BOMET 23 MOMBASA 24 UASIN-GISHU
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199,151,767
196,386,521 195,761,914 195,497,777

COMMISSION ON REVENUE ALLOCATION

ALLOCATIONS FOR MARCH-JUNE 2013 USING FORMULA
COUNTY PROPOSED ALLOCATION BY TREASURY(KSHS.)

25 MARSABIT

195,444,346

26 KWALE
27 TRANS-NZOIA 28 SIAYA

193,042,821
192,060,445 188,131,813

29 NANDI
30 NYERI 31 BARINGO 32 KAJIADO
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179,085,744
167,565,510 167,239,974 166,187,295

COMMISSION ON REVENUE ALLOCATION

ALLOCATIONS FOR MARCH-JUNE 2013 USING FORMULA
COUNTY PROPOSED ALLOCATION BY TREASURY(KSHS.)

33 WEST POKOT

162,461,293

34 NYANDARUA
35 NYAMIRA 36 KERICHO

162,211,944
156,467,263 150,552,124

37 TANA-RIVER
38 VIHIGA 39 EMBU 40 SAMBURU
38

150,065,966
145,804,238 144,543,612 133,785,319

COMMISSION ON REVENUE ALLOCATION

ALLOCATIONS FOR MARCH-JUNE 2013
COUNTY ALLOCATION BY TREASURY(KSHS.)

41 KIRINYAGA

133,255,557

42 LAIKIPIA
43 TAITA-TAVETA 44 ELGEYO-MARAKWET

129,916,165
124,644,210 123,170,577

45 THARAKA-NITHI
46 ISIOLO 47 LAMU TOTALS
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118,166,352
115,115,701 77,277,582 9,783,568,694

COMMISSION ON REVENUE ALLOCATION

CRA RECOMMENDATIONS FOR COUNTY GOVERNMENTS ALLOCATIONS 2013 2014 Fiscal Year 231 Billion 34% of Shareable Revenue Budget for 2013/2014 is yet to be approved by Parliament

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COMMISSION ON REVENUE ALLOCATION

ALLOCATIONS FOR 2013 2014 Fiscal Year

COUNTY 1 NAIROBI CITY 2 TURKANA 3 MANDERA 4 KAKAMEGA 5 NAKURU 6 BUNGOMA 7 KIAMBU 8 KILIFI 9 KITUI 10 WAJIR
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TOTAL REVENUE 11,562,564,103 9,322,777,620 7,967,530,960 7,925,295,824 7,220,775,932 6,828,787,793 6,640,014,695 6,620,154,502 6,465,403,003 6,434,680,259

COMMISSION ON REVENUE ALLOCATION

ALLOCATIONS FOR 2013 2014 Fiscal Year

COUNTY

11 12 13 14 15 16 17 18 19 20

KISII MACHAKOS MERU MAKUENI MIGORI GARISSA KISUMU HOMA-BAY BUSIA MURANG'A
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TOTAL REVENUE 6,310,916,398 6,021,800,313 5,777,099,214 5,310,978,313 5,192,815,173 5,134,840,880 5,054,395,218 5,013,198,780 4,839,971,372 4,765,016,761

COMMISSION ON REVENUE ALLOCATION

ALLOCATIONS FOR 2013 2014 Fiscal Year

COUNTY 21 22 23 24 25 26 27 28 29 30 NAROK BOMET MOMBASA UASIN-GISHU MARSABIT KWALE TRANS-NZOIA SIAYA NANDI NYERI
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TOTAL REVENUE 4,704,435,100 4,639,113,472 4,624,358,765 4,618,119,223 4,616,857,058 4,560,127,371 4,536,921,341 4,444,117,756 4,230,428,258 3,958,293,112

COMMISSION ON REVENUE ALLOCATION

ALLOCATIONS FOR 2013 2014 Fiscal Year

31 32 33 34 35 36 37 38 39 40

COUNTY BARINGO KAJIADO WEST POKOT NYANDARUA NYAMIRA KERICHO TANA-RIVER VIHIGA EMBU SAMBURU
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TOTAL REVENUE 3,950,603,180 3,925,736,420 3,837,719,459 3,831,829,246 3,696,126,314 3,556,396,747 3,544,912,556 3,444,240,471 3,414,461,514 3,160,325,207

COMMISSION ON REVENUE ALLOCATION

ALLOCATIONS FOR 2013 2014 Fiscal Year

41 42 43 44 45 46 47

COUNTY KIRINYAGA LAIKIPIA TAITA-TAVETA ELGEYO-MARAKWET THARAKA-NITHI ISIOLO LAMU TOTALS

TOTAL REVENUE 3,147,810,993 3,068,926,663 2,944,390,635 2,909,579,952 2,791,368,324 2,719,304,739 1,825,479,012 231,111,000,000

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COMMISSION ON REVENUE ALLOCATION

CRITERIA FOR IDENTIFYING MARGINALISED AREAS FOR PURPOSES OF EQUALISATION FUND:

FINANCIAL YEARS JULY 2011 TO JUNE 2014

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COMMISSION ON REVENUE ALLOCATION

EVIDENCE OF MARGINALISATION
1. WIDESPREAD POVERTY AND ILLITERACY 2. FOOD INSECURITY 3. WATER SCARCITY FOR HUMAN AND LIVESTOCK USE 4. INADEQUATE EDUCATIONAL FACILITIES 5. IMPASSABLE ROADS AND HOSTILE TERRAIN 6. MAKESHIFT MEDICAL FACILITIES 7. LACK OF ACCESS TO THE NATIONAL ELECTRICITY GRID

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COMMISSION ON REVENUE ALLOCATION

EVIDENCE OF MARGINALISATION

COUNTIES WITH POVERTY LEVELS ABOVE THE NATIONAL AVERAGE

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COMMISSION ON REVENUE ALLOCATION

EVIDENCE OF MARGINALISATION

COUNTIES WITH POVERTY LEVELS BELOW THE NATIONAL AVERAGE

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COMMISSION ON REVENUE ALLOCATION

EVIDENCE OF MARGINALISATION

HIGH POVERTY LEVELS

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COMMISSION ON REVENUE ALLOCATION

EVIDENCE OF MARGINALISATION

COUNTIES WITH LITERACY LEVELS ABOVE THE NATIONAL AVERAGE

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COMMISSION ON REVENUE ALLOCATION

EVIDENCE OF MARGINALISATION

COUNTIES WITH LITERACY LEVELS BELOW THE NATIONAL AVERAGE

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20

40

60

80

100

120

COMMISSION ON REVENUE ALLOCATION

EVIDENCE OF MARGINALISATION

LOW LEVELS OF LITERACY

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NYAMIRA NAIROBI CITY NYERI EMBU MAKUENI MACHAKOS KIAMBU KISII MOMBASA NAKURU MURANGA UASIN GISHU KERICHO LAIKIPIA ELGEYO MARAKWET NYANDARUA MIGORI BOMET NANDI HOMA BAY LAMU KAKAMEGA THARAKA NITHI KIRINYAGA VIHIGA KILIFI BARINGO KWALE SIAYA KISUMU KITUI BUNGOMA ISIOLO MERU BUSIA KAJIADO GARISSA TRANS NZOIA TANA RIVER WEST POKOT TAITA TAVETA NAROK SAMBURU MANDERA MARSABIT WAJIR TURKANA

COMMISSION ON REVENUE ALLOCATION

EVIDENCE OF MARGINALISATION

LACK OF ACCESS TO THE NATIONAL ELECTRICITY GRID.

HEADQUARTERS OF COUNTIES MARKED IN RED USE GENERATORS

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COMMISSION ON REVENUE ALLOCATION

CRITERIA FOR IDENTIFYING MARGINALISED COUNTIES

MUST BE IDENTIFIED AS MARGINALISED BY AT LEAST TWO OF THE FOLLOWING APPROACHES;
1.

COUNTY DEVELOPMENT INDEX (CDI)

2.
3.

HISTORICAL INJUSTICES ANALYSIS

COUNTY SURVEY BY CRA

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COMMISSION ON REVENUE ALLOCATION

COUNTIES IDENTIFIED AS MARGINALISED

1. TURKANA
2. MANDERA 3. WAJIR 4. MARSABIT 5. SAMBURU 6. WEST POKOT 7. TANA RIVER

8. NAROK 9. KWALE 10. GARISSA 11. KILIFI 12. TAITA TAVETA 13. ISIOLO 14. LAMU

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COMMISSION ON REVENUE ALLOCATION

EQUALISATION FUND SHARING APPROACH

THE EQUALISATION FUND IS SHARED AS FOLLOWS:
1.

50% IS SHARED EQUALLY AMONG THE 14

MARGINALISED COUNTIES
2.

50% IS SHARED BASED ON THE CDI

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COMMISSION ON REVENUE ALLOCATION

EQUALISATION FUND SHARING APPROACH

COUNTY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 TURKANA MANDERA WAJIR MARSABIT SAMBURU WEST POKOT TANA RIVER NAROK KWALE GARISSA KILIFI TAITA TAVETA ISIOLO LAMU CDI 0.27 0.31 0.33 0.37 0.38 0.38 0.39 0.44 0.45 0.47 0.50 0.51 0.52 0.56 % CDI SHARE 5.33% 4.63% 4.31% 3.93% 3.80% 3.77% 3.70% 3.28% 3.17% 3.07% 2.90% 2.80% 2.75% 2.55% 50.00%
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% EQUAL % COMBINED WEIGHTING SHARE 3.57% 8.90% 3.57% 8.20% 3.57% 7.88% 3.57% 7.51% 3.57% 7.37% 3.57% 7.34% 3.57% 7.28% 3.57% 6.86% 3.57% 6.74% 3.57% 6.64% 3.57% 6.47% 3.57% 6.37% 3.57% 6.33% 3.57% 6.12% 50.00% 100.00%

COMMISSION ON REVENUE ALLOCATION

VERTICAL SHARING OF REVENUE FOR THE YEAR 2012/13

% Total National Revenue Amount in million kshs. 831,030

Total Shareable Revenue

County Governments share (CRA Recommendation) Equalisation Fund
59

100%

608,063

33%
0.5%

202,730
3,040

COMMISSION ON REVENUE ALLOCATION

VERTICAL SHARING OF REVENUE FOR THE YEAR 2012/13

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COMMISSION ON REVENUE ALLOCATION

EQUALISATION FUND SHARING (FY 2012/13)

COUNTY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 TURKANA MANDERA WAJIR MARSABIT SAMBURU WEST POKOT TANA RIVER NAROK KWALE GARISSA KILIFI TAITA TAVETA ISIOLO LAMU % COMBINED SHARE 8.90% 8.20% 7.88% 7.51% 7.37% 7.34% 7.28% 6.86% 6.74% 6.64% 6.47% 6.37% 6.33% 6.12% 100.00%
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Total share (in million Ksh) 271 249 240 228 224 223 221 208 205 202 197 194 192 186 3,040

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FUND MANAGEMENT
THE FUND SHALL BE MANAGED BY AN ADVISORY COMMITTEE CONSISTING OF:
1. 2. 3. 4. 5. 6. 7.

CRA (Chairing) THE NATIONAL TREASURY REPRESENTATION FROM GOVERNORS FORUM THE CONTROLLER OF BUDGET APSEA KIPPRA STATE DEPARTMENTS RESPONSIBLE FOR WATER, ROADS, HEALTH, EDUCATION, AND ELECTRICITY.
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COMMISSION ON REVENUE ALLOCATION

FUND MANAGEMENT
-

ADVISORY COMMITTEE SHALL DEVELOP OPERATIONAL GUIDELINES FUND SHALL BE APPROPRIATED IN A SINGLE BUDGET LINE FOR EACH YEAR

FUND SHALL BE SPENT DIRECTLY AS CONDITIONAL GRANTS TO MARGINALISED COUNTIES UNSPENT FUNDS SHALL BE ROLLED OVER
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LOANS AND GRANT COUNCIL

-

A CRA RECOMMENDATION

TO ENSURE EQUITABLE DISTRIBUTION OF PROJECTS NATIONALLY

TO ENSURE KENYAS DEBT IS SUSTAINABLE

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COMMISSION ON REVENUE ALLOCATION

COMMISSIONERS OF THE COMMISSION ON REVENUE ALLOCATION

Micah Cheserem - Chairman

Fatuma Abdulkadir - Vice Chairperson

Joseph Kimura - Commissioner

Wafula Masai Commissioner

Meshack Onyango Commissioner

Rose Osoro -Commissioner

Joseph Kinyua PS Treasury

Amina Ahmed - Commissioner

Raphael Munavu - Commissioner

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COMMISSION ON REVENUE ALLOCATION CRA CONTACTS

Physical Address 14 Riverside Drive, Grosvenor Block, 2nd floor P.O Box 1310 -00200 NAIROBI.
254-20-4298000 0708-752 539 / 0731-776 666 254-20-4298251 info@crakenya.org

Landline Mobile Fax

Website

www.crakenya.org
crakenya #crakenya

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