Revenue Sharing Top Agenda in Annual Legislative Forum

The Commission on Revenue allocation proposal’s on the new revenue -sharing formula will be among the key issues set to be discussed by Members of County Assemblies (MCA’s)  at the Fourth annual Legislative forum in Kisumu.

The MCA’s will also deliberate on generation of revenue and absorption of the development budget by county governments.

CRA chairperson Dr Jane Kiringai will kick off the discussion with a presentation on the formula proposed by the commission before the official opening session by President Uhuru Kenyatta.

The proposed formula would see resources shared based on devolved functions, with a huge percentage going to health and agriculture.

According to CRA, this will ensure prudent management of resources, ensure prioritisation of projects and motivate counties to improve revenue collection as those that collect the most would be rewarded.

Also featuring on the first day of the talks is the place of regional development authorities and regional economic blocks and their oversight in the devolved system of government.

However, the proposal has attracted divergent opinion, with leaders from northern Kenya saying it is discriminatory and unfair and would negatively affect their counties if adopted.

The CRA is currently seeking public views on the formula before tabling it in Parliament for consideration.

On Monday, National Treasury and Planning Cabinet Secretary Henry Rotich will be among panellists discussing the implications of the new formula on the national budget.

CRA says the proposed changes were motivated by the need to strengthen the link between constitutional mandates of counties and the intergovernmental fiscal transfer system so that finances follow functions. The other objective is to closely match funding to expenditure need, according to CRA.

Revenue collection and generation will also feature prominently on the first day of the Summit with Controller of Budget Agnes Odhiambo further sharing her findings on budget management by counties, including the absorption of development expenditures and pending bills.

The latest report of the Controller of Budget reveals that most county governments are still struggling with a high wage bill.

The Controller of Budget’s report also noted under performance by county governments on own source revenue collection through property taxes and taxes, among others.

The Summit will also discuss financial oversight in the Kenyan legislatures right from the Senate to the National Assembly to county assemblies in a session to be steered by Auditor General Edward Ouko who has put many counties on the spot over irregular expenditures.

Delegates will discuss challenges facing the regional bodies and examine legislations, budgetary allocation and oversight for the regional blocks and the role of MCAs in the formulation of supporting policy framework.