Senators finally approved the Third Basis for revenue sharing on Thursday, bringing to an end months of disagreement. 41 Senators unanimously voted to approve the new formula, after a 12-member committee chosen to find a solution to the impasse led by Nairobi Senator Johnson Sakaja and Bungoma Senator Moses Wetangula put its final touches on a final draft that was agreed upon.
The total shareable revenue for the Counties from the financial year 2021/2022 will be Kshs 370 billion, with this financial year’s allocation formula being the old formula, that was utilized last year. Under the new formula, the parameters used are Basic Share (20%), Population (18%), Health (17%), Poverty level (14%), Agriculture (10%), Roads (8%), Land (8%) Urban Services (5%), with fiscal efforts and providence parameters dropped.
The formula ensures no County loses funds, with Nairobi County receiving the highest increment at Kshs 3.3 billion, taking its allocation to Kshs 19 billion. Nakuru will receive Kshs 2.549 billion more with an allocation of Kshs 13 billion, Kiambu Kshs 2.285 billion taking its allocation Kshs 11.7 billion, Turkana Kshs 2 billion, raising the allocation to Kshs 12.6 billion and Kakamega County 1.976 billion, taking its allocation to Kshs 12 billion.
Apart from Kakamega County, other Western Counties also benefit greatly except Vihiga, whose additional funds equates to among the lowest. Bungoma County’s allocation will be Kshs 10.6 billion, an increase of Kshs 1.76 billion from the 2020/21 financial year allocation of Kshs 8.89 billion. Trans Nzoia County will receive Kshs 7.18 billion of the shareable revenue in 2021/22, with a change of Kshs 1.42 billion, with the County receiving Kshs 5.76 billion in 2020/21. Busia County will receive an additional Kshs 1.15 billion, with the total allocation rising to Kshs 7.17 billion. Vihiga County, which was set to lose in the original formula draft, will receive Kshs 5.06 billion, an additional of Kshs 414 million on the Kshs 4.65 billion for the 2020/21 financial year, among the lowest increments.