By Our Reporter
The Departmental Committee on Finance and National Planning is currently holding a two day Familiarization retreat with the Commission on Revenue Allocation in Serena Hotel Mombasa County.
The retreat which took off yesterday saw the Commission through its Vice Chair Koitamet Ole Kina take the Committee through its mandate, roles and their programs The Commission informed the lawmakers that when developing the revenue allocation recommendations for national and county governments, the Commission looks at the performance of the economy, which includes gross domestic product (GDP), inflation, interest rates, and exchange rates.
In addition, the Commission examines the country’s fiscal performance, which includes the total revenue collected nationally, royalties from mining, government expenditure, public debt, and county government finances:
On Marginalization, the Commission told the lawmakers that it recommends the following formula for sharing resources among the county governments
Population – 45%
Basic equal share – 25%
Poverty index – 20%
Land area – 8%
Fiscal responsibility – 2%
The Committee was finally appraised on the framework for the Third Revenue Sharing Basis
which has has four objectives:- to enhance service development delivery, to promote balanced development, to incentivise counties to optimise capacity to raise revenue and to incentivise prudent use of public resources.
These objectives are expected to be implemented through a transfer framework that provides for three components: service delivery, balanced development, and incentive. The retreat will continue tomorrow where the Committee is expected to scrutinize the 2023/24 FY budget estimates for the Commission.
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