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BACK TO OFFICE REPORT

I. GENERAL INFORMATION
a). Mission date(s) 27th OCTOBER2023

b). Mission to CRA OFFICES IN GRESVENOR SUITES

c). Activity (if applicable) REPORT ON CONSULTATIVE MEETING BETWEEN
COUNTY ASSEMBLIES’ FORUM AND COMMISSION ON
REVENUE ALLOCATION
27TH OCTOBER 2023

d). Mission member(s) County Assemblies Forum:

Hon. Josiah Thiriku, Chairperson of the Speakers Chapter

Hon. Dolfine Bwaki
Hon. Milton Omukunda
Hon. Christopher Omulele, Intergovernmental Sub-Commitee

Commission on Revenue Allocation:

Hon. Mary Chebukati, Chairperson

Commissioner Dr. Jalang’o Midiwo
Commissioner Koitamet Olekina
Commissioner Hadija Juma
Commissioner Dr. Isabel Waiyaki
Commissioner Jonas Kuko
e). ] CAF and CRA

f). BTOR distribution list Executive Committee, CAF Secretariat.

REPORT TITLE: REPORT ON CONSULTATIVE MEETING BETWEEN

COUNTY ASSEMBLIES’ FORUM AND COMMISSION ON
REVENUE ALLOCATION

I. DESCRIPTION OF MISSION ACHIEVEMENTS/TASKS COMPLETED:

The consultative meeting between the County Assemblies Forum (CAF) and the Commission on
Revenue Allocation (CRA) addressed various critical issues affecting County Assemblies. The
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meeting aimed to find solutions and ensure effective financial management for County
Assemblies. The key outcomes and achievements of the meeting are summarized below:
1. Pending Bills and Budget Ceilings:
 CRA informed CAF about the amendments made to the PFM Bill in 2021,
allowing County Assembly funds not utilized by the end of a financial year to be
carried forward to the next fiscal year.
 CRA cited that the Senate had increased the budget ceilings of County
Assemblies in 2021 to cater for pending bills, with the expectation that County
Assemblies would no longer face pending bills. However, Hon. Thiriku expressed
concerns that the funds sometimes do not reach County Assemblies, as the
County Executive consumes the funds under their budget. The meeting
emphasized the need for complete financial independence for County Assemblies.
 It was agreed that County Assemblies would review their records to ascertain
whether they received extra funds in 2021 and whether these funds were used to
clear pending bills, as indicated by CRA.
2. Adjustment of Budget Ceilings for Staff Remuneration and Statutory Remittances:
 CRA was responsive and committed to adjusting budget ceilings in the next
review to accommodate changes in staff remuneration and statutory remittances,
such as the Housing Levy, NHIF, and NSSF.
3. Mileage Allowances for Nominated MCAs:
 The issue of County Assemblies being unable to provide mileage allowances for
nominated MCAs in line with the Nakuru High Court ruling (Petition No. 1 of
2019) was discussed. It was resolved that the Salaries and Remuneration
Commission (SRC) was best suited to advise on this matter.
4. Staff Capping Guidelines:
 The issue of reviewing staff capping guidelines to allow County Assemblies to
recruit professional/technical staff beyond the CRA guidelines was discussed.
CRA committed to reviewing the guidelines, provided that County Assemblies
pledge not to recruit unnecessary staff.
5. Adjustment of Budget Ceilings for MCAs Non-Partisan Staff:
 The Commission resolved to review the budget ceilings to allow non-partisan
staff to be paid better.
6. Provision of Security Personnel:
 CRA informed CAF that they were developing a policy on the provision of
security personnel, and it would be handled in the policy. Regarding the provision
of bodyguards to MCAs, it was agreed that this should be managed by the
Inspector General of Police.
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7. Taxation of Per Diems:

 CRA stated that they had no authority to handle issues related to the taxation of
per diems and referred CAF to the Kenya Revenue Authority (KRA).
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8. Sensitization on Budget Ceilings:
 CRA committed to visiting every County Assembly to conduct sensitization on
how CRA arrives at budget ceilings.
9. Proposed Retreat:
 CRA proposed a retreat between the Commissioners and EC (Economic
Commission) once the technical secretariat finished developing the
recommendations for County Assembly ceilings for the next financial year. The
purpose of the retreat is to deliberate and agree on the results.
10. Data Submission:
 CAF resolved to urge the remaining 16 County Assemblies that had not submitted data
on staff establishment to do so.
II. Recommendations/ Next steps/Follow-up actions:
1. County Assemblies should conduct a review of their records to determine if they received
extra funds in 2021 and whether these funds were used to clear pending bills, as stated by
CRA.
2. CRA should follow through on its commitment to adjust budget ceilings in the next
review to accommodate changes in staff remuneration and statutory remittances.
3. County Assemblies should engage with SRC to seek guidance on providing mileage
allowances for nominated MCAs.
4. CRA should expedite the review of staff capping guidelines, ensuring that they align with
the operational requirements of County Assemblies and adhere to the principles of
prudent financial management.
5. CRA should finalize and communicate the policy on the provision of security personnel
and work closely with the Inspector General of Police to address issues related to
bodyguards for MCAs.
6. CAF should engage with KRA regarding the taxation of per diems and seek clarity on the
applicable tax regulations.
7. CRA should schedule and conduct sensitization visits to every County Assembly to
educate them on how CRA arrives at budget ceilings.
8. The proposed retreat between CRA Commissioners and EC should be organized
following the development of recommendations for County Assembly ceilings for the
next financial year.
9. CAF should actively encourage the remaining 16 County Assemblies to submit data on
staff establishment as required.

III. Key observations/Remarks:

The meeting provided a platform for meaningful dialogue between CAF and CRA, addressing
critical financial and operational issues affecting County Assemblies. The commitment from
both sides to find solutions and ensure effective financial management was evident.
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IV. Brief description of next steps/Follow-up actions:
CAF and CRA will collaborate to implement the recommendations and follow-up actions
outlined above. These actions will contribute to improved financial management and service
delivery in County Assemblies.
V. Additional information, lessons learned, and partnership possibilities emerged as a
result of networking activities:
The meeting underscored the importance of financial independence for County Assemblies and
the need for effective communication and collaboration between County Assemblies, CRA, and
other relevant institutions. Lessons learned from this meeting will inform future engagements
and partnerships for the benefit of County Assemblies and the constituents they serve.