CRA under fire for ‘paltry’, delayed allocation of funds
Commission on Revenue Allocation Vice-Chairperson Koitamet Olekina and Commissioner Isabel Waiyaki before the Senate’s Finance and Budget committee to respond to queries on the Equalisation Fund Appropriation Bill 2023 at County Hall, Nairobi on March 29, 2023.
Senators have criticised the Commission on Revenue Allocation (CRA) over the distribution of the Sh13.89 billion equalisation fund, accusing it of playing “politics” with the monies.
They described the selection of the funds’ beneficiaries as discriminatory and a mockery of some counties that were allocated “peanuts”.
The lawmakers also questioned the timeliness of the Bill, which seeks to appropriate the funds barely two months to the end of the financial year.
Some 1,424 marginalised regions spread across 34 counties have been earmarked to benefit from the Sh13.89 billion in the current financial year ending June 30.
The senators raised the concerns during the second reading of the Equalisation Fund Appropriations Bill 2023.
Vihiga Senator Godfrey Osotsi lamented that many counties, including his, have been locked out despite having several areas qualifying as marginalised. He pointed out that several counties with pockets of poverty have fallen victim to the skewed criteria employed by CRA.
“They have added the counties and given them very little funds just for politics,” said Mr Osotsi.
He said the CRA must review the policies they are relying on to identify marginalised areas and the process must be consultative.
He added: “Passing this Bill in May means we are simply appropriating corruption as it is too late in the day to send the funds to the counties; the money will be spent on corruption. We are going to oppose this bill as this is not the right time to appropriate such monies.”
Move to court
Makueni Senator Dan Maanzo threatened to move to the High Court to stop the implementation of the Bill should it be approved by the House and signed into law by the President.
The senator claimed that the commission left out many regions that are severely starved in terms of development while others received paltry allocations that cannot be used to implement any meaningful projects.
“I don’t think CRA or the government is serious at all. This is ridiculous... Makueni County, an arid county, is getting Sh43 million,” said the senator.
Elgeyo-Marakwet Senator William Kisang said his county has only been allocated Sh87 million out of the Sh13 billion.
“We want CRA to tell us where they got the data to inform their allocation because there are some counties neighbouring Elgeyo-Marakwet getting close to a billion, yet we are getting peanuts,” he said.
Kakamega Senator Boni Khalwale accused CRA of being held captive to the point of including undeserving counties including Bungoma, Kericho, Kisumu, Machakos, Nakuru, Nandi, Siaya, Meru and Murang’a in the list.
Nairobi Senator Edwin Sifuna said the fund was intended to be ring fenced to be used to provide basic services like water, roads, health facilities and electricity in marginalised areas to bring them to the level enjoyed by other counties but the fund is now being misused.
“If we want to use this fund for equalisation then what will Sh48 million Siaya get be used for? It is not answering the original purpose for which the fund was meant,” said Siaya Senator Oburu Oginga. “With the two months remaining, there is no way the counties will make good use of the money. We are just making a political statement.”
However, Mandera Senator Ali Roba allayed fears over the short time remaining, saying once the fund is appropriated, it will not lapse at the end of the financial year but will remain in the fund’s kitty.
The Equalisation Fund is provided for under Article 204 of the Constitution to provide basic services including water, roads, health facilities and electricity to marginalised areas.
The article provides that 0.5 per cent of all revenue collected by the national government be allocated to the fund. Since its establishment, the fund’s entitlement stands at Sh54.03 billion but only Sh26.29 billion has been allocated and Sh12.40 billion disbursed.
