Why counties could drop some revenue sources on CRA model

Commission on Revenue Allocation Chairperson Mary Wanyonyi (left), Trade CS Rebecca Miano and Kakamega county governor Fernandes Barasa at the launch of CRA Tariffs and pricing policy at Safari Park Hotel on June 18, 2024.

Photo credit: Lucy Wanjiru | Nation Media Group

Counties may be forced to drop loss-making revenue streams and duplicated charges, as a new model obligates them to do a cost-benefit analysis before imposing fees on businesses.

The Tariffs and Pricing Policy model wants the devolved units to base trade fees on firms on a pricing model that compares spending on collecting a charge and the amount to be netted to avoid current cases where some counties are “spending a shilling to collect a shilling”.

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Note: The results are not exact but very close to the actual.