Population key to sharing of funds

Heavily populated counties are likely to get the bulk of funding from the National Government if population becomes the key factor in determining sharing of revenue.

The new Constitution requires that at least 15 per cent of all revenue collected by the central government be disbursed to the 47 counties.

However, the actual figures will be determined by the yet-to-be established Commission on Revenue Allocation whose job will be to come up with a criteria that will guide the sharing of tax money between the national government and the counties.

The criteria will include factors such as population, infrastructure, the economic needs of a county and its viability. The commission will have powers to recommend how the money will be shared.

To ensure fairness, Articles 202 and 203 of the constitution stipulate the conditions that the commission must adhere to when sharing out the money.

Fairness to all

Parliamentary Constitution Implementation Oversight Committee vice chairman Ababu Namwamba said the money will be shared in a way that takes into account fairness to all counties.

“For instance Kakamega County with nine constituencies and nearly two million people cannot get the same allocation as Vihiga that has four constituencies and less than half a million people.

“Equal mounts will result in unfairness to some counties and a formula will be specified in legislations that will be passed on counties,” he said.

According to Mr Nzamba Kitonga, the chairman of the Committee of Experts that wrote the new Constitution, all counties will first be allocate equal amounts before other factors are considered.

“The principle is that they start at the same amounts and then the factors in each are taken into account to determine the final figures,” he said.

The Constitution provides for an Equalisation Fund meant to give special attention for under-developed and neglected areas. Ms Njoki Ndung’u, a member of the Committee of Experts, said population will be the key factor.

“It is not possible for the counties to receive the same amounts. There are factors in the constitution which will determine the amounts and it is likely that big cities and metropolis will get huge amounts.”

Given the current budget figure of Sh1 trillion, it means that each county — should the money be shared equally — will receive Sh3 billion from the National Government. “You cannot imagine the Nairobi county receiving Sh3 billion because it cannot sustain its population,” she said.

If population is the main factor, Nairobi County with a population of 3.13 million, Kakamega (1.66 million), Bungoma (1.63 million), Kiambu (1.62 million) and Nakuru (1.60 million) will receive the highest amounts.