Agency cautions on row between senators, MPs

By Macharia Kamau

The Commission on Revenue Allocation (CRA) wants the National Assembly and Senate to employ already existing dispute resolution mechanisms to avoid numerous instances of conflict on financial issues experienced last year.

The two houses were in constant war over the distribution of revenues between the national and county governments. The battles between the Senate and National Assembly, at one time, ended up at the Supreme Court for the interpretation of the Constitution on the role of each of them on revenue allocation to counties, which resulted in a delay in the passage of the Division of Revenue Sharing Bill 2013. The CRA chairman Micah Cheserem said the two houses should amicably resolve the issues on revenue allocation.

He, however, noted that the Commission’s articles of Constitution provide for alternative dispute resolution mechanisms. “If the two houses do not agree, they should form a mediation committee that is made of equal number of members from each house,” said Cheserem.

CRA has recommended that the counties be allocated Sh279 billion over the 2014/2015 financial year, which is Sh69 billion more than Sh210 that they got for the current financial year. This translates to 28 per cent of the total sharable revenue of Sh997 billion. It is also above the 15 per cent set as the minimum that should be allocated to the counties by the constitution. The Commission said the substantial increment has been due to a further need among counties to set up their systems.

Linet Oyugi, Director of Research CRA, said allocation to counties is expected to stabilise soon.

“Once we have the systems in place, it is possible that the money allocated to the counties could come down or stabilise at a certain level from where there will be just marginal increases,” she said.