Functions of the Commission on Revenue Allocation in Kenya

The functions of the Commission on Revenue Allocation (CRA) Kenya are stipulated in the Kenyan Constitution. CRA is one of the independent Commissions under Chapter 15 of the Kenyan Constitution.

Article 215 of the Kenyan Constitution establishes the Commission on Revenue Allocation (CRA).

Functions of the Commission on Revenue Allocation in Kenya

Article 216 of the Constitution states the functions of the Commission on Revenue Allocation. The major function of the Commission is to make recommendations concerning the basis for the equitable sharing of revenue raised by the national government:

• between the national and county governments; and
• among the county governments.

The other functions of the commission on revenue allocation are as follows:

• recommend on matters concerning the financing of both the national government and county governments.
• recommend on matters concerning the financial management of both national and county governments.
• define and enhance revenue sources of the national government.
• define and enhance revenue sources of county governments.
• encourage fiscal responsibility by the national government.
• parliament shall consult CRA and consider CRA’s recommendations before passing any Bill appropriating money out of the Equalization Fund.
• encourage fiscal responsibility by county governments.
• parliament shall consult CRA on any Bill that includes provisions dealing with sharing of revenue.
• be consulted on any Bill that includes provisions dealing with any financial matter concerning county governments.
• publish and review the policy that sets out criteria for identifying marginalized areas (Article 260) in the actualization of the Equalization Fund (Article 204).
• be consulted and its’ recommendations considered by Parliament for all laws being enacted relating to devolved government.
• make recommendations to the Senate when determining the basis for allocating among the counties the share of national revenue that is annually allocated to the county level of government (Article 217).

The Commission shall submit its recommendations on revenue sharing to the Senate, the National Assembly, the national executive, county assemblies and county executives.

composition of commission on revenue allocation

The Commission on Revenue Allocation consists of the following members appointed by the President:

• a chairperson, who the President shall nominate with the approval of the National Assembly;
• two persons nominated by the political parties represented in the National Assembly according to their proportion of members in the Assembly;
• five persons nominated by the political parties represented in the Senate according to their proportion of members in the Senate; and
• the Principal Secretary in the Ministry responsible for finance.

For more about the Commission on Revenue Allocation (CRA) Kenya, see the Commission on Revenue Allocation Act or their website.