This archive report was first published on 3 November 2021.
Magavana wamepata pigo baada ya Tume ya Ugavi wa Mapato (CRA) kukataa wito wao wa kutaka fedha zinazotolewa kwa serikali za kaunti ziongezwe kutoka Sh370 bilioni hadi Sh381 bilioni.
According to CRA, the country is facing severe economic challenges, making it impossible for the county governments to receive Sh381 billion.
‘The country is expected to collect Sh2.14 trillion in 2022. The national government will retain Sh1.76 trillion, and the county governments will receive Sh370 billion,’ CRA reported.
The commission attributed the economic challenges to the COVID-19 pandemic, which has slowed down the country's economic growth.
‘The pandemic has caused a significant decline in revenue collection, and a substantial amount of funds will be used to provide security during the August 9, 2022, general election and to settle debts owed by the country,’ CRA stated.
Bi Kiringai, the CRA chair, warned that the country might be forced to borrow more if the counties' plea is not considered.
Baraza la Magavana (CoG) had earlier rejected CRA's proposal to allocate Sh370 billion to the counties in the 2022/2023 financial year.
The CoG argued that CRA's proposal lacked sufficient justification.
Counties that received the highest allocations in the current financial year (2021/2022) include Nairobi, Nakuru, Turkana, and Kakamega, which received Sh19.3 billion, Sh13 billion, Sh12.6 billion, and Sh12.4 billion, respectively.
On the other hand, counties that received the lowest allocations include Lamu (Sh3.1 billion), Tharaka Nithi (Sh4.2 billion), Elgeyo Marakwet (Sh4.6 billion), and Isiolo (Sh4.7 billion).
CRA also reported that 35 counties are violating the law by failing to use at least 30% of the funds allocated to them from the national government for development projects.
