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April 2012
COMMISSION ON REVENUE ALLOCATION
INTERIM RECOMMENDATIONS ON THEMARGINALIZATION POLICY AND
CRITERIA ON THE EQUALIZATIONFUND
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Article 204 of the Constitution of Kenya2010 establishes an
Equalisation Fund.
One half per cent of all the revenuecollected by the national
government
each year constitutes the EqualisationFund.
INTRODUCTION
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There is established an EqualisationFund into which shall be
paid one half
per cent (0.5%) of all the revenuecollected by the national
governmenteach year calculated on the basis of themost recent
audited accounts of revenuereceived, as approved by the
NationalAssembly.
KEY FEATURES OF THE FUND
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The national government shall use theEqualisation Fund only to
provide basic
services including water, roads, healthfacilities and
electricity to marginalisedareas to the extent necessary to bring
thequality of those services in those areas tothe level generally
enjoyed by the rest ofthe nation, so far as possible.
KEY FEATURES OF THE FUND
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Any unexpended money in the EqualisationFund at the end of a
particular financialyear shall remain in that Fund for use
during any subsequent financial year.
This article lapses twenty years after theeffective date.
Parliament may extend the period.
KEY FEATURES OF THE FUND
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Article 216 (4) requires the Commissionon Revenue Allocation to
determine,
publish and regularly review a policy inwhich it sets out the
criteria by which toidentify the marginalised areas for thepurposes
of Article 204
KEY FEATURES OF THE FUND
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a. The respective CountyGovernments to be responsiblefor
proposing the basic servicesto be upgraded within the county
in a given year for considerationby the Equalization
FundCoordination Committee.
b. .
RECOMMENDATION 1
b. Disbursements from the Equalization Fund to be channeled
through County Governments, who will be responsible forensuring
implementation of the selected. projects.
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a. Allocations from theEqualization Fund to beused for
developmentexpenditures.
b. The funds set aside for thetwo financial years, 2011/12and
2012/13, should berolled over to the 2013/14financial year.
RECOMMENDATION 2
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A Coordination Committee to besteered by the CRA, and
withrepresentation from all relevantministries and stakeholders
will
evaluate and propose projects forfunding from the
EqualizationFund.Assessment of projects willbe based on objective
criteriaspecified in the Policy on
identifying marginalized Areas.
RECOMMENDATION 3
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The strategic sectors to be targeted during thefirst round of
allocations in 2013/14 will be for:
a. Provision of waterb. Education
c. Health services
d. Energy ande. Rural access roads
RECOMMENDATION 4
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THANK YOU
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