NAIROBI: The Chairperson of the Commission on Revenue Allocation (CRA), Certified Public Accountant Mary Wanyonyi Chebukati, emphasized the urgent need for the 47 county governments in Kenya to establish and implement tariffs and pricing policies. This move aims to prevent litigation and boost revenue collection from Own Revenue Sources (OSR) for better service provision to residents.
According to Kenya News Agency, Mrs. Chebukati highlighted the underutilization of OSR collection potential among counties, noting that none have yet passed any tariffs and pricing policy. Instead, they rely solely on Finance Acts, which have led to 41 counties facing lawsuits for breach of legal standards in their revenue collection methods. She underscored the importance of having these policies in place to align with the legal framework post-2010 Constitution, which shifted responsibilities from the Ministry of Local Government to local counties.
The CRA chair was speaking in Naivasha during a meeting with officials from 12
counties, focusing on the dissemination of the Model Tariffs and Pricing Policy for County Governments and findings from the OSR Potential and Tax Gap Study Report. The counties were urged to consider this model policy to customize and apply it to their respective regions to ensure a sustainable future.
The policy, launched on June 18, 2024, targets five key revenue streams including trade licensing fees, building approvals, parking, market access fees, and housing rent fees. Chebukati expressed optimism about the positive impact of the policy on county revenues and the business environment within counties by removing duplicative charges for similar services.
Furthermore, CRA plans to engage all counties over the next three months to support the adoption of this policy, with upcoming forums scheduled to include revenue and municipality managers from various counties. The initiative is part of CRA’s broader mandate under the Constitution of Kenya and the County Governments Act to guide financial management a
nd enhance revenue sources at both national and county levels.
