CRA to introduce new formula for allocating county funds

The Commission on Revenue Allocation (CRA) plans to introduce the fiscal responsibility formula in allocating revenue to the counties as a modality to see that counties deliver to the people.

Speaking in Migori County, Professor Ludovick Shirima of CMA said the fiscal responsibility strategy that entails power of the government to collect tax and power to spend its allocation will be the parameter to decide which counties will get higher revenue allocation, adding that the strategy will make counties work harder in revenue collection and services delivery to its people.

Mr Shirima said the strategy ought to have been put in place so that counties are allocated funds depending on how they spent their money and revenue collection, adding that those performing poorly will get fewer funds.

The CRA team has been in Migori County for the past two days to assess the county revenue collection system and make recommendations on how the county can improve their revenue collection.

Prof Shirima said the county of Migori is not able to meet its target in revenue collection because of poor revenue collection techniques at the lower level of the revenue collection system.

He said the county has also not been taxing hotels, entertainment and drinking places among others, which should form part of the revenue to the county government.

According to the commission, lack of proper legislation has also undermined the capacity of the county to collect enough revenue.