This archive report was first published on 3 November 2021.
On November 3, 2021, the Commission on Revenue Allocation (CRA) announced its proposed disbursement to counties for the 2022/23 financial year, maintaining the allocation at Sh370 billion.
The decision was made in light of economic uncertainty and the upcoming polls, which could halt most economic activities. This comes as the country is still recovering from the economic effects of the Covid-19 pandemic.
The CRA cited the National Treasury's Sh2.1 trillion revenue projection, which is Sh330 billion more than what was collected in the previous financial year. The commission noted that there is no much headroom to allocate more funds to any level of government.
Chairperson Jane Kiringai said that the only way to increase the allocation to Sh381 billion, as proposed by the Council of Governors (CoG), is through more loans or more taxes. She urged the CoG to suggest how this amount should be raised.
The allocation to the State for 2022/23 will be maintained at Sh1.7 trillion, while the equalisation fund allocation stands at Sh6.8 billion. The counties' allocation of Sh370 billion is equivalent to 27.3 per cent of the most recent audited and approved accounts for the financial year 2016/17.
