Team seeks fair resource sharing

A team is working on a formula aimed at ensuring equitable distribution of national resources amongst the country’s districts.

The method will help Kenya address development differences among and within its various regions.

Chaired by the Economic Secretary, the team comprises ministries of Finance, Planning and Local Government and development partners including the World Bank and the United Nations Children’s Fund (Unicef).

“It (formula) will need a little adjustment depending on the outcome of the August 4 constitutional referendum. The two scenarios (a Yes or No vote win) have been taken into account,” said a senior ministry of Planning official on condition of anonymity because he is not mandated to speak on behalf of the ministry.

It is worth noting that the Fiscal Management Act, 2008, which came into force last year, requires the Minister for Finance to explain to Parliament what criteria he will use in the allocation of resources in his budget.

The proposed formula, however, is part of a programme aimed at increasing the participation of Kenyans in the country’s budget-making process through what is known as social budgeting.

“Social budgeting is expected to address weaknesses in the existing budgeting process,” says a working paper on the project being implemented by the government and Unicef.

Rights issues

The new system will bring into operation what is known as a dual budgeting framework.

This is hoped will correct the perceived concentration of the current budget process on macroeconomic issues - growth rate, inflation, fiscal deficit, taxation - at the expense of human development and rights issues.

The government is expected to launch social budgeting guidelines next month, effectively giving Kenyans the power to determine how resources are to be utilised and on what projects at community level.

In effect, it will give the public a second window to participate in the country’s budget-making process.