COMMISSION ON REVENUE ALLOCATION

COMMISSION ON REVENUE ALLOCATION

Promoting an equitable society
RECOMMENDATIONS ON SHARING OF REVENUE RAISED BY THE NATIONAL GOVERNMENT BETWEEN THE NATIONAL GOVERNMENT AND COUNTY GOVERNMENTS AND AMONG COUNTY GOVERNMENTS

17 August 2012

COMMISSION ON REVENUE ALLOCATION

PROCESS OF APPROVING THE FORMULA BY PARLIAMENT

ARTICLE 217 - ON DIVISION OF REVENUE

SENATE

COMMISSION ON REVENUE ALLOCATION

AUDITED YEAR 2010/2011 GOVERNMENT EXCHEQUER RECEIPTS
PARTICULARS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Opening Balance Income Tax - PAYE Income Tax - Corporations Withholding Tax Immovable Property Second Hand Motor Vehicle Purchase Tax VAT - Local Goods VAT - Imported Goods Excise Tax Licence under Traffic Act Royalties Customs Duties Other Taxes from International Trade Stamp Duty Land Rent Fees Under Traffic Act Motor Driver's Licenses Land Adjudication and case Fee Sale of Freehold Interest in Agriculture Land Other Profits & Dividends Profits & Dividends from CBK Interest Received Misc. Revenues Fines, Penalties & Fortitures & Other Charges SUB TOTAL - SHAREABLE REVENUE FY 2010/11 KSHS. MILLION 2,674 137,055 121,596 90,211 81,670 80,567 2 ,464 46,072 20,599 6,800 1,073 11,086 0 759 7,823 290 610,739

COMMISSION ON REVENUE ALLOCATION

AUDITED YEAR 2010/2011 GOVERNMENT EXCHEQUER RECEIPTS Cont.

PARTICULARS

FY2010/11 KSHS. MILLION 2,457 815 17,016 1,126 33 7,468 4,000 186,300 1,075 220,290 831,029

1 2 3 4 5 6 7 8 9 10 11

Contribution from Govt. Emp. To S.&W.S within Govt. Recurrent Recovery Over Issues 2008/09 Development Recovery Over Issues 2008/09 Loans from Foreign Govt. through Exchequer Loans to Non-Financial Public Enterprises Loans to Financial Institutions Grants from Foreign Govt. through Exchequer Domestic lending - T/Bills Domestic lending - T/Bonds Civil Contigencies Fund Recoveries Net Domestic Borrowing (CBK) SUB TOTAL - NON-SHAREABLE REVENUE GRAND TOTAL
4

COMMISSION ON REVENUE ALLOCATION

ESTIMATED 2012/13 COUNTY GOVERNMENT BUDGET
A

ESTIMATED BY TREASURY ESTIMATED REMUNERATION OF COUNTY EXECUTIVE AND COUNTY ASSEMMLIES ESTIMATED RUNNING EXPENSESFOR COUNTY EXECUTIVE AND COUNTY ASSEMLIES SUB TOTAL RUNNING EXPENSES FOR COUNTY AND SUB-COUNTY PUBLIC SERVICE (PROCUREMENT, ACCOUNTING, AUDITING, FINANCIAL SYSTEM, HRM AND ICT) SUB TOTAL 10% CONTIGENCY (PROVISION FOR TENDENCY TO HOLD AT THE CENTRE BY MINISTRIES TOTAL SHARE OF COUNTIES

SHS. MILLION 148,000

15,000

7,500 170,500

13,800 184,300

18,430 202,730

COMMISSION ON REVENUE ALLOCATION

RECOMMENDATIONS ON SHARING REVENUE RAISED NATIONALLY BETWEEN THE NATIONAL AND COUNTY GOVERNMENTS FOR THE FINANCIAL YEAR 2012/2013 SHAREABLE AUDITED REVENUE FOR 2010/2011 = SHS.610 BILLION

COUNTY GOVERNMENT SHS.203 BILLION 33%

NATIONAL GOVERNMENT SHS.407 BILLION 67%

COMMISSION ON REVENUE ALLOCATION

ATTRIBUTES OF A GOOD REVENUE SHARING FORMULA AMONG COUNTY GOVERNMENTS

1.
2.

AS SIMPLE AS POSSIBLE ;
BASED ON AVAILABLE OFFICIAL DATA ;

3.
4.

HAS INCENTIVES FOR EFFICIENT FISCAL MANAGEMENT;

MINIMISE INEQUALITIES AMONG COUNTIES; AND

5.

GIVES EFFECT TO THE PROVISIONS OF THE CONSTITUTION

COMMISSION ON REVENUE ALLOCATION PARAMETER WEIGHTS (%)

PARAMETER CRA INITIAL RECOMMENDATION COUNTIES PROPOSAL CRA FINAL RECOMMENDATION

POPULATION EQUAL SHARE POVERTY LAND AREA FISCAL RESPONSIBILITY OTHERS TOTAL

60 20 12 6 2 100
8

47.6 21.6 18.0 8.3 3.0 1.6 100

45 25 20 8 2 100

COMMISSION ON REVENUE ALLOCATION

PARAMETERS AND WEIGHTS IN THE RECOMMENDED HORIZONTAL FORMULA
2% POPULATION 25%

POVERTY 45%
LAND AREA

BASIC EQUAL SHARE

8%

FISCAL RESPONSIBILITY 20%

COMMISSION ON REVENUE ALLOCATION

RECOMMENDED PARAMETERS, WEIGHTS AND AMOUNTS YEAR 2012/2013 - KSHS. 203 BILLION

PARAMETER
1. POPULATION
2. EQUAL SHARE 3. LEVELS OF POVERTY 4. LAND AREA 5. FISCAL RESPONSIBILITY
TOTAL

%
45%
25% 20% 8% 2%

KSHS
91,350,000,000
50,750,000,000 40,600,000,000 16,240,000,000 4,060,000,000

100
10

203,000,000,000

COMMISSION ON REVENUE ALLOCATION

AMOUNTS OF REVENUE TO BE SHARED THROUGH EACH PARAMETER YEAR 2012/2013 - KSHS. 203 BILLION

KSHS. 203 BILLION 100%

45%

25%

20%

8%

2%

KSHS. 91 BILLION POPULATION

KSHS. 51 BILLION EQUAL SHARE

KSHS. 41 BILLION LEVELS OF POVERTY

KSHS. 16 BILLION LAND AREA

KSHS. 4 BILLION FISCAL RESPONSIBILITY

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COMMISSION ON REVENUE ALLOCATION

TOTAL REVENUE ALLOCATION FOR EACH COUNTY GOVERNMENT YEAR 2012/2013 - KSHS. MILLION
NO.
1 NAIROBI CITY 2 TURKANA 3 MANDERA 4 KAKAMEGA 5 BUNGOMA 6 NAKURU 7 KIAMBU 8 KILIFI 9 KITUI 10 WAJIR 11 KISII 12 MACHAKOS 13 MERU 14 MAKUENI 15 MIGORI 16 GARISSA 17 KISUMU 18 HOMA-BAY 19 MURANG'A 20 NAROK 21 MOMBASA 22 UASIN-GISHU 23 MARSABIT 24 KWALE 25 TRANS-NZOIA

COUNTY

POPULATION
3,138,369 855,399 1,025,756 1,660,651 1,630,934 1,603,325 1,623,282 1,109,735 1,012,709 661,941 1,152,282 1,098,584 1,356,301 884,527 917,170 623,060 968,909 963,794 942,581 850,920 939,370 894,179 291,166 649,931 818,757

TOTAL REVENUE - Millions

10,156 8,189 6,998 6,961 6,604 6,342 5,832 5,815 5,679 5,652 5,543 5,289 5,074 4,665 4,561 4,510 4,440 4,403 4,185 4,132 4,062 4,056 4,055 4,005 3,985

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COMMISSION ON REVENUE ALLOCATION

TOTAL REVENUE ALLOCATION FOR EACH COUNTY GOVERNMENT Cont.. YEAR 2012/2013 - KSHS. MILLION
NO.
26 SIAYA 27 NANDI 28 BOMET 29 BUSIA 30 KERICHO 31 NYERI 32 BARINGO 33 KAJIADO 34 WEST POKOT 35 NYANDARUA 36 NYAMIRA 37 TANA-RIVER 38 VIHIGA 39 EMBU 40 SAMBURU 41 KIRINYAGA 42 LAIKIPIA 43 TAITA-TAVETA 44 ELGEYO-MARAKWET 45 THARAKA-NITHI 46 ISIOLO 47 LAMU TOTALS

COUNTY

POPULATION
842,304 752,965 724,186 488,075 758,339 693,558 555,561 687,312 512,690 596,268 598,252 240,075 554,622 516,212 223,947 528,054 399,227 284,657 369,998 365,330 143,294 101,539 38,610,097

TOTAL REVENUE- Millions

3,904 3,716 3,678 3,646 3,520 3,477 3,470 3,448 3,371 3,366 3,247 3,114 3,025 2,999 2,776 2,765 2,696 2,586 2,556 2,452 2,389 1,603 203,000

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COMMISSION ON REVENUE ALLOCATION

TOTAL REVENUE ALLOCATION PER COUNTY GOVERNMENT BY PARAMETER YEAR 2012/2013 - KSHS. MILLION RECOMMENDED TO COUNTY GOVERNMENTS 32.8%: KSHS.203,000 MILLION
NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 COUNTY ISIOLO LAMU MARSABIT TANA-RIVER SAMBURU TURKANA TAITA-TAVETA WAJIR BUSIA GARISSA ELGEYO-MARAKWET MANDERA LAIKIPIA THARAKA-NITHI WEST POKOT BARINGO KWALE EMBU NYANDARUA KITUI VIHIGA NYAMIRA MAKUENI KILIFI PER PERSON- KShs. 16,669 15,791 13,928 12,970 12,395 9,573 9,085 8,538 7,470 7,239 6,907 6,823 6,752 6,711 6,575 6,246 6,163 5,810 5,645 5,608 5,455 5,427 5,274 5,240

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COMMISSION ON REVENUE ALLOCATION

TOTAL REVENUE ALLOCATION PER COUNTY GOVERNMENT BY PARAMETER YEAR 2012/2013 - KSHS. MILLION RECOMMENDED TO COUNTY GOVERNMENTS 32.8%: KSHS.203,000 MILLION
NO. 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 COUNTY

KIRINYAGA BOMET KAJIADO NYERI MIGORI NANDI TRANS-NZOIA NAROK MACHAKOS KISII KERICHO SIAYA KISUMU HOMA-BAY UASIN-GISHU MURANG'A MOMBASA KAKAMEGA BUNGOMA NAKURU MERU KIAMBU NAIROBI CITY TOTALS

PER PERSON- KShs. 5,236 5,079 5,017 5,013 4,973 4,935 4,867 4,856 4,815 4,811 4,642 4,634 4,582 4,569 4,536 4,440 4,324 4,192 4,049 3,956 3,741 3,593 3,236 5,258

15

COMMISSION ON REVENUE ALLOCATION

TOTAL REVENUE ALLOCATION PER COUNTY GOVERNMENT BY PARAMETER YEAR 2012/2013 - KSHS. MILLION

16

COMMISSION ON REVENUE ALLOCATION

COUNTY PER PERSON ALLOCATION YEAR 2012/2013 - KSHS.

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COMMISSION ON REVENUE ALLOCATION

THANK YOU