Senate has approved Meru Senator Mithika Linturi’s amendments on earlier proposals by Nairobi Senator Johnson Sakaja on the Third Basis for Revenue Allocation. 25 Senators noted in favour of the amendments while 20 against. The Third Basis for Revenue Allocation had drawn a division in the Senate. The model presented by CRA has population as the main parameter in determining shareable revenue for Counties, although it has other parameters whose weights are key including health, agriculture and roads. This means most populous Counties stand to gain, while the least populated Counties losing.
A section of Senators, dubbed ‘Team Kenya’ had opposed this-after Murang’a Senator Irungu Kang’ata-tabled further amendments, saying some Counties were set to lose millions, albeit unfairly according to them. The debate was adjourned during its seventh session last week on Tuesday, and on Friday, the ‘Team Kenya’ team selected Senators Sakaja and Linturi to come up with a final document, factoring in their amendments. In Sakaja’s amendment, the baseline figure to be shared equally among the Counties was Kshs 316.5 billion with the parameters being population 18 per cent, Health Index 17 per cent, Agriculture 10 per cent, Urban Index 5 per cent, Poverty Index 14 per cent, land area 8 per cent, Fiscal Effort 1 per cent, Roads Index 6 per cent Prudence Index 1 per cent, and Basic Share 20 per cent. In Linturi’s amendments mad eon the Nairobi Senator’s proposals, his baseline of shareable revenue was to be between Kshs 250 and Kshs 270 billion.
On Tuesday, the Senate agreed with a baseline of Kshs 270 billion, with the surplus, Kshs 46.5 billion, being shared among the Counties with the different parameters. In the approved formula, 19 Counties will lose Kshs 1.8 billion down from Kshs 17 billion as was outlined in the initial formula proposed by CRA and later tabled by the Finance Committee. Some of the losers include Mandera (Sh245.2 million), Kwale (177.9 million), Wajir (Sh175.6 million) and some top Counties gaining are Kiambu (Sh160.2 million), Nandi (Sh149.2 million), Nakuru (Sh149.0 million).