The Commission on Revenue on Allocation (CRA) on Thursday held a consultative familiarization forum with officials from County Government of Uasin Gishu. The forum which brought together the CRA commissioners, County Executive Committee Members, Members of County Assembly and other county officials was meant to give the participants from the county an opportunity to understand the new formula being used by CRA to allocate funds to counties.
Dubbed Second Revenue Sharing Formula, it has some changes compared to the one that had been used since 2013/2014 financial year. CRA has now come up with the new basis for sharing revenue among county governments for the next three financial years commencing 2016/2017.
“The sharing revenue formula has changed slightly Poverty and Fiscal effort reduced from 20% to 18% and 2% to 1% respectively. The Population and Land area remained at 45% and 8% respectively while Equal Share was raised to 26% from 25%” said Amina Ahmed, CRA Commissioner.
The development factor is now pegged at 1% while Personal Emolument was reduced to nil.
During his contribution C.E.C Member for Finance and Economic Planning Mr. Shdrack Shambai urged the National Government through CRA to transfer all funds meant for devolved functions.
“This will make it easier for the counties implement their County Integrated Development Plans (CIDP) with ease,” he said.
Uasin Gishu county according to the new formula will receive Sh 6.83B for 2016/17 compared to Sh 5.007B in the 2015/16 financial year.
On his part, Uasin Gishu assembly Leader of Minority Ramadhan Ali told the commission to rethink on the issue of public participation.
“Our efforts to ensure proper structures at county to incorporate public participation in the budget have been hindered by the Ministry for Devolution and the CRA citing conflict of interests and overlapping of roles,” Mr. Ali said.