Hurray! CRA To Allocate Additional Sh25 billion To Counties

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The Commission on Revenue Allocation chairman Micah Cheserem had during a brief a briefing said that counties will be receiving additional Sh25 billion to enable them to pay salaries, rehabilitate schools and build headquarters in the 2016/17 financial year.

In his statement, Cheserem said the new allocations will include Sh5 billion for salaries of devolved staff, Sh11.3 billion for rehabilitation of schools and a further Sh5 billion for emergency fund kitty. He added that in the proposal which is yet to be approved by the parliament, will also have  the sum of Sh4 billion for the construction of county headquarters in Tharaka Nithi, Lamu, Nyandarua, Tana River and Isiolo.

 “It will be noted that the equitable share to county governments is recommended to rise from Sh260 billion, or 33 per cent of shareable revenue to Sh331 billion, which is 35 per cent of shareable revenue,” said Mr Micah Cheserem, the CRA chairman

Though the commission is yet to say anything about the rest of the fate of the remaining 42 counties headquarters, he said each of the five counties will then receive Sh800 million.

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The proposals if approved,  will see an overwhelming improvement in the allocation of grants to counties by Sh29 billion from the current financial year.

The CRA was said to have allocated Sh16 billion to counties as conditional grants for running of hospitals and the rehabilitation of roads.

However, the proposals on salaries were made in response to complaints laid by governors that the commission had failed to consider funding salaries for the ballooning work force, most of who they inherited from the defunct local authorities.



The council of Governors chairman Peter Munya had last week requested for an additional Sh180 billion as compensation to lay off the workers claiming that counties had failed to release the excess workforce.

The county bosses, led by Wycliffe Oparanya of the finance committee, have already initiated dialogue with CRA to consider increasing allocation for salaries to the inherited staff.

“Kakamega County has the lowest per capita compared to all other counties in the country due to the current formula. The new formula should also consider the number of workforce inherited from the defunct local governments.

“Here in Kakamega, we inherited over 5, 000 workers from local governments,” said Mr Oparanya.

 Meanwhile, the deputy President, William Ruto had on Tuesday faulted the governors’ request for a Sh486 billion in the coming financial year, saying such would increase the country’s debt to soaring figures. Speaking in an Intergovernmental Budget and Economic Council meeting with the county bosses, Ruto said they should rather be forced to accept whatever the government is capable of funding.

The county bosses had instead proposed an allocation of Sh91 billion as a new conditional grants to be used in the running of hospitals, payment of salaries, building of headquarters as well as roads. This is according to documents sent by the Council of Governors to the CRA.

But according to documents sent by the Council of Governors to the CRA, the county bosses had instead proposed an allocation of Sh91 billion as a new conditional grants to be used in the running of hospitals, payment of salaries, building of headquarters as well as roads.