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Commission On Revenue Allocation Act

This Is An Act Of Parliament Enacted To Provide For The Functions And Powers Of The Commission On Revenue Allocation In Addition To Those In Article 253 Of The Constitution Of Kenya, The Procedure For Appointing Members To The Commission And For Such Other Connected Purposes.

  1. The Commission has power to acquire, hold, charge and dispose of movable and immovable property. Section 3
  2. The Commission can perform all such other things or acts for the proper discharge of its functions under the Constitution and this Act as may lawfully be done or performed by a body corporate. Section 3
  3. Members of the Commission may serve on a part-time basis. Section 5(2)
  4. The Commission has a right to establish committees for the better carrying out of its functions. The Commission may include in these committees other persons whose knowledge and skills are found necessary for the functions of the Commission. Section 12
  5. The Commission has a right to employ its own staff through a competitive and transparent process. Section 16
  6. Members of the Commission, employees and agents are not liable for matters done in good faith for executing the functions, powers or duties of the Commission. Section 18
  7. The Commission has an obligation to cause to be prepared estimates of the revenue and expenditure of the Commission for every year and submit them to the Cabinet Secretary for tabling in the National Assembly at least three months before the beginning of the next financial year. Section 21
  8. The Commission has an obligation to cause to be kept all proper books and records of account of the income, expenditure, assets and liabilities of the Commission. Section 22
  9. With regard to reports required to be submitted to parliament, president or the Senate by Article 254 of the Constitution, the said report shall contain; (sec 23)
    • the financial statements of the Commission;
    • a description of the activities of the Commission;
    • such other statistical information as the Commission considers appropriate relating to the Commission’s functions; and
    • any other information relating to its functions that the Commission considers necessary.
  10. The Commission has a right to make regulations generally to effect any provision of the Act. Section 25
  11. The Commission has an obligation to develop a code of conduct for its members and staff. Section 26
  12. Persons who have personal or fiduciary interest in any matter before the Commission, and are present at a meeting of the Commission or any committee at which any matter is the subject of consideration have an obligation to declare such interest and refrain from taking part in any consideration or discussion of, or vote on any question touching such matter. Second Schedule section 2(1)
  • The headquarters of the Commission must be in the capital city although it may establish branches at any other place in Kenya. Section 4
  • Appointment of chairperson and members to the commission must be according to the Act and Article 215 of the Constitution. They are to be non-executive and should perform their functions in accordance with Article 216 of the Constitution. Section 5

Qualifications for appointment of chairperson - Section 6(1)

  • Hold a degree from a university or an equivalent professional qualification recognized in Kenya;
  • Have professional experience in financial and economic matters of at least fifteen years in the case of the chairperson and ten years in the case of any other member;
  • Have had a distinguished career in their respective fields.
  • Meets the requirements of Chapter Six of the Constitution


Persons not qualified to be chairperson of member of the Commission - (Sec 6 (2)

  • members of Parliament or County Assembly;
  • members of a governing body of a political party;
  • an elected members of  local authorities;
  • undischarged bankrupts;
  • persons removed from office for contravening the provisions of the Constitution or any other law; or
  • persons who have not met their legal obligations relating to tax and other statutory obligations


  • The chairperson, the members and the secretary must each take oath of office administered by the Chief Justice an as set out in the First schedule. Section 7
  • Vacancy in the office of the chairperson or members shall occur by (section 8)
    • Death of the holder
    • Resignation
    • removal from office under any of the circumstances specified in Article 251 and Chapter Six of the Constitution


  • Filling of such vacancy shall be by the procedure provided for under the Constitution and the Act. The person who fills such vacancy shall serve for a term of six years but shall not be eligible for reappointment. Section 9


Other functions of the Commission with regard to the financing and financial management by county governments as required in Article 216 of the Constitution. section10

  • Make recommendations for consideration by Parliament prior to any Bill  appropriating money out of the Equalization Fund is passed in Parliament;
  • Upon request from the Senate, make recommendations on the basis for allocating among the counties the share of national revenue that is annually allocated to the county levels of government;
  • Submit recommendations to the Senate, National Assembly, national executive, County Assembly and county executive on the proposals made for equitable distribution of revenue between the national and county governments and amongst the county governments
  • Perform such other functions as are provided for by the Constitution or any other written law
  • Salaries and remunerations of chairperson and members of the Commission is determined by the Salaries and Remuneration Commission. Section 11
  • The Commission to conduct its procedures in accordance with the Second Schedule. It may also regulate its own procedure. Section 13
  • Appointment of the secretary to the Commission should be through a competitive recruitment process. Such secretary must be;
    • a Kenyan citizen;
    • holds a degree from a university recognized in Kenya;
    • have at least ten years professional experience in economic and financial matters; and
    • meets the requirements of Chapter Six of the Constitution Section 14


Removal of the secretary from office is to be done by the Commission only and should be due to any of the following reasons: section15

  1. inability to perform the functions of the office arising out of physical or mental incapacity;
  2. gross misconduct or misbehaviour;          
  3. incompetence or neglect of duty;
  4. violation of the Constitution; or
  5. any other ground that would justify removal from office under the terms and conditions of service.
  • The seal of the Commission is to be kept in a place the Commission directs and shall only be used with permission from the Commission. Section 17


The funds of the Commission include; (Section 19)

  1. monies allocated by Parliament for the purposes of the Commission;
  2. such monies or assets as may accrue to the Commission in the course of the exercise of its powers or the performance of its functions under this Act; and
  3. all monies from any other source provided or donated or lent to the Commission.









  • Obstruct or hinder, or assault or threaten a member or staff of the Commission acting under the Act;


  • Submit false or misleading information


  • Misrepresent to, or knowingly mislead, the member or a member of staff of the Commission acting under the Act.


Fine maximum Kshs. 3,000,000 or imprisonment for maximum 5 years or both.



2nd Schedule Sec 2

Failure by a person having personal or fiduciary interest in any matter before the Committee to declare the interest.

Fine maximum Kshs. 3,000,000 or imprisonment for maximum 7 years or both.

Comparison of Recommendations of the Commission on Revenue Allocation and the National Treasury on the Division of Revenue in 2015/16based on the County Allocation of Revenue Bill, 2016 (paragraph 11 to 16 of Explanatory Memorandum to the County Allocation of Revenue Bill, 2016)

Whereas the Commission on Revenue Allocation recommended that Kshs. 331.8 billion be allocated to county governments, the Bill proposes the amount of Kshs. 280.3 billion. The difference in this later amount has been attributed to:

  • Use of different revenue growth factor (7.9% as opposed to 15.09% used by CRA)
  • County equitable revenue share adjustment of Kshs. 27.8 billion for additional county roads
  • County equitable revenue share adjustment of Kshs. 5 billion to cater for public participation:
  • The Bill does not include Kshs. 25.7 billion that was included by the Commission on Revenue Allocation as new conditional allocations.

N/B; The Division of Revenue Bill 2016 also makes the same propositions as those made by Parliament in the County Allocation of Revenue Bill, 2016. This is particularly with regard to allocations to County Government. (Paragraph 21-26 of the Explanatory Memorandum to the Division of Revenue Bill, 2016)

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