Experts fault county funds sharing recipe

Revenue Allocation Commission chairman Micah Cheserem. Photo/FILE

Population experts want the formula for sharing county funds changed.

The experts said the formula which the Commission on Revenue Allocation (CRA) should use must be based on poverty, rather than population.

Speaking in Nairobi at a workshop organised by the Society for International Development (SID), the experts, including University of Nairobi population scientist Dr Alfred Agwanda, said a formula based on population will perpetuate poverty in less endowed counties.

“The lower end will not develop in tandem with the high end like Nairobi,” Dr Agwanda said.

He said some counties do not have an inch of tarmac road and basing the formula on birth rate would not bring equality, which the Constitution stipulates.

SID programmes coordinator Katindi Sivi-Njonjo said the 60 per cent allocated according to population should be reduced to 40 per cent and the difference redistributed to poorer end counties.

“The formula should be pro-poor and funds for poverty increased from 12 per cent to at least 25 per cent,” she said.

Another expert, Dr Charles Karisa, said over-emphasis on the size of a county was wrong.

“Size was over-emphasised. Area as a factor in allocating resources cannot stand alone. Inequality is the key to growth and poverty reduction,” Dr Karisa said.

But CRA director of legal affairs Sheila Ayieka said the formula was only a proposal that needed approval by Parliament.

Last week, CRA chairman Micah Cheserem said money would be allocated to the 47 counties based on population (60 per cent), poverty levels (12 per cent), size (six per cent), and fiscal responsibility (two per cent). (READ: Leaders reject county cash sharing proposal)