The National Assembly has differed with the Commission on Revenue Allocation (CRA) on the share of revenue to be disbursed to the 47 counties in the 2024/25 financial year.
While the CRA had recommended setting the equitable share of revenue at Sh398.1 billion, excluding the Sh8.37 billion allocated to the Equalisation Fund, the National Assembly in its newly published Division of Revenue Bill (DORB) is proposing an equitable share of Sh391.1 billion and Sh7.8 billion for equalisation fund that targets the marginalised areas.
The Constitution requires that 0.5 percent of all revenue collected by the national government annually and calculated on the most recent audited accounts be paid into the Equalisation Fund.
The Sh7 billion difference in the equitable share proposals could set up MPs and Senators for a showdown if the latter opts to reject the Bill.
According to the National Assembly, the differences come from contrasting formulas in the adjustment of the base of equitable share under the road maintenance fuel levy (RMFL) allocation.
“Whereas the DORB, 2024 has adjusted the base of equitable share for the financial year 2023/24 of Sh385.4 billion by netting off an allocation of Sh10.9 billion to RMFL in the financial year 2024/25 as reported by the Kenya Roads Board, CRA has adjusted it by Sh9.8 billion allocated to RMFL in the financial year 2020/21,” reads the DORB in part.
The National Assembly has invited comments on DORB until Monday next week when the House shall discuss the Bill and any amendments before it is taken to the Senate.
