- A Parliamentary committee has locked out the commission on revenue allocation (CRA) in deciding how county and national governments share revenue from natural resources.
- In a report on a Bill that seeks to ends conflict between the levels of government over the sharing of the proceeds, the senate Lands and Natural Resources committee want an independent authority formed to decide sharing of the cake.
A Parliamentary committee has locked out the Commission on Revenue Allocation in deciding how county and national governments share revenue from natural resources.
In a report on a bill that seeks to end conflict between the two levels of government over the sharing of the proceeds, the Senate Lands and Natural Resources committee wants an independent authority formed to decide sharing of the cake.
“The committee proposed amendment to establish a Benefit Sharing Authority, to perform the function assigned to the CRA under the bill as Article 216 of the constitution does not contemplate performing all the functions so assigned,” the committee said.
The panel chaired by Nyandarua Senator John Methu, filed the report on the National Resources (Benefit Sharing) Bill, 2023.
The Bill is sponsored by Tana River Senator Danson Mungatana.
The Bill gave CRA more powers to oversee the benefit sharing between the two entities.
It seeks to provide a legislative framework for the establishment and enforcement of a system of benefit sharing in natural resource exploitation between natural resource exploiters, the national government, county governments and local communities.
Several counties are currently fighting with the national government over the sharing of proceeds from the natural resources.
Communities have also demanded a share of the revenue.
The Bill states revenue collected from the natural resources shall be shared on the basis of 20 per cent of the revenue collected shall be paid into a sovereign wealth fund established by the national government.
It further proposes that 80 per cent of the revenue collected shall be shared between the national government and respective county governments in the ratio of 60;40 per cent respectively.
The Kenya Revenue Authority shall declare and account to the commission the total sum collected from affected entities with respect to each natural resource as provided for under the Act.
The Bill proposes that at least 40 per cent of the revenue assigned to county governments shall be utilised to implement local community projects.
The remaining 60 per cent of that revenue shall be utilised for the benefit of the entire county.
The Bill states CRA shall, in consultation with the Council of Governors and relevant national government entities, determine and review the amount of royalties and fees payable by affected entities in respect of a particular sector.
The commission shall be responsible for the co-ordination of the preparation of benefit sharing agreements between an affected county and an affected entity.
It shall review, and where appropriate, determine the royalties payable by an affected entity engaged in natural resource exploitation.
The commission will also be responsible for the identification of counties that are required to enter into a benefit sharing agreement under the Act.
Mungatana in his proposed law further adds that the commission will oversee the establishment of benefit sharing committees and forums, ensure the proper and timely payment of funds to counties and local communities.
The commission shall also build the capacity of local communities in negotiations for benefit sharing and implementation of related projects.
“The commission may, in furtherance of its functions, collaborate with such other bodies or organisations within or outside Kenya as it may consider necessary for the better performance of its functions under this Act,” reads part of the bill.