This archive report was first published on 15 May 2020.
On May 15, 2020, the Supreme Court delivered an advisory opinion that has significant implications for the country's revenue sharing model.
According to the court's majority decision, the recommendations of the Commission on Revenue Allocation (CRA) are not binding to Parliament. This ruling was made by a five-judge bench, with Chief Justice David Maraga stating that the determination will prevent a repeat of last year's prolonged impasse over the Division of Revenue Bill.
The impasse occurred when the National Assembly disregarded the CRA's recommendations, which are constitutionally mandated to formulate revenue sharing projections annually. The situation took a fresh twist after the National Assembly passed the Appropriation Act, 2019, before Parliament had passed the Bill.
Parliament's delay in passing the Division of Revenue Bill led to disagreements between the Senate and the National Assembly, resulting in the 47 counties being starved of cash. The mediation committee, comprising representatives from the two Houses, failed to reach a deal, prompting the court action.
However, the Supreme Court cautioned that a prolonged stalemate in the enactment could form grounds for any citizen to move to the High Court to seek the dissolution of Parliament for failing to enact the legislation under the Fifth Schedule of the Constitution.
Justice Njoki Ndungu gave a dissenting opinion in the matter.
