Deputy President William Ruto has reiterated that a revenue sharing formula should be supported that ensures the marginalized and small Counties don’t lose too much funds, while at the same time ensuring populous Counties get additional funds. The Third Basis for Revenue Allocation has caused tension in the Senate, 25 Senators opposed to it and 22 supporting the government backed formula, with the 10th sitting on Monday to discuss the formula and find a way failing. The formula as proposed by the CRA and presented by the Finance Committee allocated more funds to the most populous Counties, with least populated Counties on the losing side.
Population is the key parameter used to disburse the funds, with health, agriculture, fiscal effort, land area among other parameters. Key amendments were made by Murang’a Senator Irungu Kang’ata, who proposed the changes take effect from the 2022/23 financial year. Senators Johnson Sakaja and Mithika Luinturi also combined ideas to come up with a solid draft, with the base shareable revenue for Counties at Kshs 270 billion and the rest to Kshs 316 billion being subjected to the Third Basis formula. Another proposal by nominated Senator Petronila Were seeks to retain the second basis for allocation for Kshs 316 billion for this year, and the shareable revenue should be raised to Kshs 348 billion and disbursed under the Third Basis formula.
Speaking at his Sugoi home in Uasin Gishu on Friday, DP Ruto said it’s understandable that we have a financial review, “The Senate has the prerequisite leadership and wisdom for them to come up with a formula that takes into account all the parameters and ensure that populous Counties have additional resources because we have agreed it is a constitutional requirement that we review the formula at this point in time but as we review that formula we must ensure that we move the country together.” He said populous Counties need additional funds but small Counties or marginalized Counties in North Eastern, Coast regions shouldn’t suffer adding that a win-win situation is possible and that losses and gains should be moderated. “As I have said it is possible for us to have a formula that gives Kenya a win-win scenario.”
