The Commission on Revenue Allocation (CRA), chaired by Mr. Micah Cheserem, launched marginalization Policy on 27^th, February, 2013 at Stanley Hotel, Nairobi.

The Commission on Revenue Allocation was established under Article 215 of the Constitution of Kenya 2010 with the main mandate of recommending the basis for equitable sharing of revenues raised nationally between the national and the county governments, and sharing of revenues among the county governments.

Article 216(4) of the Constitution, requires the Commission to determine, publish and regularly review a policy on which it sets out the criteria by which to identify marginalised areas for purposes of the allocation and use of the Equalization Fund.

Marginalization Policy aims to set out the criteria for identifying marginalised areas and counties in Kenya and provides a framework that shall guide in the planning, implementation, monitoring and evaluation in the use of the Equalisation Fund.

In   setting   out   the   criteria   for   identifying   marginalized   areas,   the Commission identified reasons for marginalisation, which include:

1.  Legislated discrimination;

2. Geographical location;

3. Culture and lifestyles;

4. External domination;

5. Land legislation and administration;

6. Minority recognition groups;

7.  Ineffectual political participation; and

8.  Inequitable government policies

The Commission further highlights the consequences and impacts of marginalisation. These include high levels of absolute and relative poverty, food insecurity, poor infrastructure, poor state of basic social services and poor governance.

The primary criterion chosen for identifying marginalized counties in the policy is the County Development Index (CDI), which is a composite index, constructed from indicators measuring the state of health, education, infrastructure and poverty in a county. The CDI is complemented by two other approaches, namely: expert analysis on historical and legislative discrimination and results of the Commission’s county   marginalisation survey.

Based on these criteria, the following fourteen (14) counties have been identified as marginalised.

1.            Turkana          2.            Mandera        3.            Wajir

4.            Marsabit         5.            Samburu      6.            West Pokot

7.            Tana River     8.            Narok             9.            Kwale

10.         Garissa             11.          Kilifi             12.            Taita Taveta

13.            Isiolo               14.            Lamu

The Policy further makes the following recommendations;

1. i.      The Equalisation Fund be appropriated as conditional grants to marginalized counties.   Thus, the Fund should be spent when county governments are in place;
2. ii.    The  Fund  should  be  appropriated  in  a  single  budget  line instead of the sectors under the Medium Term Expenditure Framework (MTEF);
3.  iii. The Fund should be managed by an Advisory Committee.
4.  There should be clearly defined linkages between Fund management, county and local level structures and line ministries; and
5.  iv.     This policy is effective for three (3) years before it is reviewed.

The policy recognises that there are marginalised communities living in counties which are classified as non-marginalised and thus do not benefit from the Equalisation Fund.   Both the national and county governments should, therefore, institute affirmative action programs targeting minorities and marginalised groups within counties to enable them realise their social and economic rights as enshrined in the Constitution.

All actors in government are expected to rally around this policy in order to ensure that we make the country an equitable society as envisaged in the Constitution.

The Equalisation Fund is pegged at 0.5 per cent of the last audited national revenue, in this case the Sh.608. 063 billion shareable revenue collected in the 2012/2013 financial year.

The money is allocated to counties needing extra resources to provide basic services like water, roads, health and electricity until they are close to those of other counties.

Under the criteria released Wednesday 27^th February 2013 by CRA chairman Micah Cheserem, Turkana will receive Sh271 million while Lamu county will get Sh186 million annually.

Others are; Mandera, 249 million, Wajir, 240 million, Marsabit, 228 Million, Samburu, 224 million, West Pokot, 223 million, Tana River,221 million Narok, 208 million, Kwale, 205 million, Garissa, 202 million, Kilifi, 197 million Taita Taveta194 million and Isiolo 1992 million each annually before the formula is reviewed in 2016.

There is need to ensure that adequate civic education is conducted with a view to ensuring that we elect adequate number of women to meet the minimum 1/3 gender rule.  Women need to stand up and demand for what is rightfully theirs, by doing so will give them a higher chance of being elected and fighting for the change they desire. Additionally,  women leaders should also contest for other elective positions like governor, members of parliament and not just women representative to fulfil this constitution requirement.

Kenya has the lowest female representation in the whole of Africa with 9.8%, compared to Rwanda 56.3%, Tanzania 36.0%, Uganda 35.0% and Burundi 30.5%. In South Africa the representation is 55%. Women have the capability of being good leaders and we have an opportunity to prove this.

“Do not judge me until you know me, do not underestimate me until you have challenged me and do not talk about me until you have talked to me.” Unknown.

The 47 county governments, created by the Constitution will need to be adequately funded when they come into operation on March 5, 2013.

The principal function of the Commission on Revenue Allocation is to make recommendations for equitable sharing of revenue raised nationally between the national and county governments and among the county governments. Other functions of the Commission include: defining and enhancing revenue sources of national and county governments, financing and financial management of county governments, encouraging fiscal management and publishing policy on criteria for identifying marginalized areas, among others.

The basis for revenue sharing between the two levels of government, usually referred to as the vertical share (national and county) is costing of functions of the two levels of governments.

The Commission carried out careful studies and  recommended that the horizontal (among the 47 counties) revenue sharing shall for the first generation formula be based on five parameters namely, population, basic equal share, poverty index, county land area, and fiscal responsibility.

After consultations with the public, and other stakeholders, the weights attached to each of the parameters in the recommendation adopted by Parliament are: population – 45%, basic equal share – 25%, poverty index – 20%, land area – 8%, and fiscal responsibility – 2%.

The rationale for choosing these parameters include: international experiences in different countries, measurability, causal connections, less susceptible to influencing, and giving effect to constitutional and legislative stipulations. The recommendations have been approved by the National assembly.

With the new Constitution, public expectations are quite high and more specifically with regard to the equitable revenue sharing among the counties. In developing the first generation formula, the Commission bridged these expectations by engaging the public and other stakeholders in all the 47 counties. In the end, the parameters and weights used in horizontal revenue allocation formula is a product of that public participation hence a constitutional requirement fulfilled.

Capacities of counties to manage revenue allocated and to generate revenue from own sources are a major concern to the Commission. Different counties have varying revenue potentials as well as human resource capacities to harness and manage county resources. Again, the success of the devolved system of government, and in particular the prudent fiscal management of finances will depend on the quality of leaders at all levels of government. ‘How much county is allocated counts however what is more important is how well these resources are managed’ Micah Cheserem CRA chairman, (Chapter 6 of the Constitution-Leadership and integrity).