Commission on Revenue Allocation CRA

 

 

Open. Accountable. Responsible

 

Contents
Introduction

Authority

The Commission on Revenue Allocation appears not to have much authority under the New Constitution unlike other Commissions, except to recommend to Parliament and county governments on the formula to be used in the sharing of national revenue.

Roles and Functions

The role of the CRA is one of a technical nature in which the Commission prepares the formulae that will guide the division of Public Funds.

Composition

The CRA is led by a Chair and seven Commissioners all of whom are financial and economic experts. The same skills are expected of its secretariat.

 

 Introduction

 

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The New Constitution provides for a limited form of devolution. This means that some of the functions  previously performed by the central government have been assigned to county governments. Consequently, some revenue from the center must be allocated to the counties. The key questions that must be addressed in revenue allocation are how much of national revenue will be allocated to the counties and in what proportions. The determination of the formular to be used in the sharing of this revenue constitutes the main functions of the Commission on Revenue Allocation, CRA.

Although the recommendations of the CRA are majorly of a technical nature, they cannot not be made unilaterally or in ignorance of history or prevailing political discourse, given that the sharing of revenues is by its very nature, a part of a wider political process. Hence its formulae for allocation are guided by a legislative framework enacted mostly by the Senators in their capacity as political representatives of the people of the counties. The CRA and the Senate must therefore maintain a close working relationship: 

217. (1) Once every five years, the Senate shall, by resolution, determine the basis for allocating among the counties the share of national revenue that is annually allocated to the county level of government.

(2) In determining the basis of revenue sharing under clause (1), the Senate shall (b) request and consider recommendations from the Commission on Revenue Allocation;

Indeed the CRA must also liaise with other political players, namely the members of the National Assembly, and all county authorities - through the regular submission of its reports and recommendations:  

216. (5) The Commission shall submit its recommendations to the Senate, the National Assembly, the national executive, county assemblies and county executives.

Indeed, the CRA, the Treasury, and the National Assembly's Budget and Appropriations Committee must build and maintain strong and transparent links in order to deliver to the Kenyans, a thorough and acceptable Division of Revenue Bill, every financial year.

 

 Authority

 

The Commission on Revenue Allocation, CRA is a constitutional commission under the Constitution of Kenya 2010. Chapter 12 - Public Finance, Part 4 - Revenue Allocation:

215. (1) There is established the Commission on Revenue Allocation.

Excerpts from Article 248 of Chapter 15 - Commissions and Independent Offices:

248. (2) The commissions are— (f) the Commission on Revenue Allocation;

The CRA is authorised to set out the framework which defines marginalised areas as such and hence the formulae used to determine resource apportionment to those areas:

216. (4) The Comission shall determine, publish and regularly review a policy in which it sets out the criteria by which to identify the marginalised areas for purposes of Article 204 (2).

 

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