Senator proposes new revenue allocation formula for counties

What you need to know:

  • Kiambu Senator Kimani Wamatangi is pushing for consideration of revenue raised per county and the number of “outsiders” living and enjoying services in a county as among the parameters in the fund distribution formula, arguing that they will ensure equality.
  • The senator said the current formula is unfair to the developed counties and warned that if not addressed, developed counties will be subsequently marginalised since they do not get enough resources to meet their needs. 
  • He argued that counties contributing more to the national kitty should be rewarded with a percentage of the allocation in the equitable share for further development.

A senator is rooting for an amendment on the formula used by the Commission on Revenue Allocation (CRA) to determine the amount of money allocated to a counties to ensure harmony in allocations.

Kiambu Senator Kimani Wamatangi is pushing for consideration of revenue raised per county and the number of “outsiders” living and enjoying services in a county as among the parameters in the fund distribution formula, arguing that they will ensure equality.

The senator said the current formula is unfair to the developed counties and warned that if not addressed, developed counties will be subsequently marginalised since they do not get enough resources to meet their needs. 

He argued that counties contributing more to the national kitty should be rewarded with a percentage of the allocation in the equitable share for further development.

For instance, he said Mandera received Sh8.956 billion while Kakamega received Sh8.90 billion despite being a major contributor to the exchequer; while Meru, Murang’a, Kericho and Uasin Gishu counties got Sh6.4 billion, Sh5 billion, Sh4.4 billion and Sh5.1 billion respectively.

Mr Wamatangi (pictured) gave an example of Ethiopia where he said, 15 per cent of the equitable share is given based on the amount of revenue raised per region.

“We should fight to bring the marginalised counties at par with the developed ones but we must also ensure there is a healthy balance and continuity rest we bring down the developed ones,” the senator said, adding that if his proposal goes through, Kiambu should get Sh9.8 billion in the coming financial year.

He explained further that besides the hefty allocations to the counties, the national government has been running multi-billion shillings projects in the marginalised areas.

CRA is reviewing the parameters used in allocating funds to counties and has proposed new ones, which include personnel enumeration based on the number of workers inherited by a county which will be at 2 per cent and development, which will be at one per cent of the allocation.

The commission has been using population at 45 per cent, equal share at 25 per cent, poverty gap at 18 per cent, land area at 8 per cent and fiscal responsibility.

Mr Wamatangi said he had also moved an amendment to the CRA’s proposed new formula that will see public pressure per county as part of their formula.

According to him, some counties such as Kiambu and Nairobi host and spend a lot on people from other counties that are getting more cash.

Kiambu, he said, hosts and serves people who work or do business in Nairobi where they contribute revenue while people from Murang’a, Nyeri and Machakos counties have been relying on health care from Kiambu and Thika hospitals.

He gave Ghana as an example where he said 15 per cent of the equitable share is given based on the public pressure per region.

Last week, Governor William Kabogo said governors from Murang’a, Nairobi and Machakos, should contribute funds to support the purchase of medicine and other non pharmaceutical materials in Kiambu since the high est number of patients treated at Kiambu and Thika hospitals are from their counties.