The Commission on Revenue Allocation (CRA) held a week-long stakeholder validation workshop aimed at refining the Draft Model Tariffs and Pricing Policy and Guide. The objective of the Tariffs and Pricing Policy is to provide a rationale for levying fees and charges, as well as a basis for setting fee/charge levels. Additionally, it will enable county residents to interpret the tariffs, fees and charges they pay and the services that they will expect from the county government in return.
Section 120 of the County Governments Act requires each county to develop a Tariffs and Pricing Policy, which essentially forms a basis of levying fees and charges for the services that they provide. Such a Policy has to be aligned with existing national government laws and policies.
The Fourth Schedule of the Constitution “distributes” functions between the National Government and County Governments. By law, there are 14 functions specifically assigned to Counties.
Participants in this workshop were drawn from the State Departments of Public Works, and Housing and Urban Development; County Governments of Machakos, Kiambu and Nairobi; the National Treasury; Kenya Institute for Public Policy Research Analysis (KIPPRA) and Kenya Investment Authority (KenInvest).
The purpose of the retreat was to edit and refine the draft Policy and its Guide. This entailed forming a work plan which included going through the background, policy objectives, policy and legislative frameworks, the general principles that guide the determination of Tariffs, situational analysis, tariff determination and policy implementation framework.
Speaking during the meeting, CRA Chairperson Mary Chebukati stressed on the importance of public participation and capacity building during the policy implementation.
“We need to adequately involve all stakeholders and the public throughout this process of developing the policy. Public participation has to be properly done to ensure we adhere to the constitutional principle of openness and accountability. “Said Mrs. Chebukati.
She added that the principles of affordability, equity, financial sustainability, destitution, transparency, promotion of local economic development and environmental sustainability should be followed, as they provide a useful guide in the determination of Tariffs.
A follow-up meeting was scheduled for 27th October 2023 for validation of the Model. Upon validation, a final draft model will be presented to the National Treasury.
The Commission on Revenue Allocation is an independent Commission established under the 2010 Constitution of Kenya. Its primary mandate is to recommend the basis for equitable sharing of revenue raised nationally between the National and County Governments, alongside sharing of revenues among County Governments.