Governors want funds allocation formula changed

Thursday February 4 2016

Kakamega Governor Wycliffe Oparanya at a past event.  FILE PHOTO | JARED NYATAYA | NATION MEDIA GROUP

Kakamega Governor Wycliffe Oparanya at a past event. FILE PHOTO | JARED NYATAYA | NATION MEDIA GROUP 


Some governors have asked the Commission on Revenue Allocation to review the criteria used in sharing of funds among counties to ensure equity.

Mr Wycliffe Oparanya, the Council of Governors’ finance committee chairman and Vihiga County boss Moses Akaranga on Wednesday said the current system was unfair and discriminatory.
“In Kakamega County, we have been disadvantaged by the current formula. We receive around Sh8 billion for a population of over two million people and with one of the highest poverty index,” said Mr Oparanya told
The Kakamega governor said the new formula should be based on population and poverty indexes to ensure equitable allocation.
The current system used by the CRA bases its criteria on population which takes up 45 per cent share, poverty (18), land area (8), personnel emoluments (20) as well as development at one per cent.
“The new formula should also consider the number of workforce inherited from the defunct local governments. Here in Kakamega, we inherited over 5,000 workers from local governments,” said Mr Oparanya.

Mr Akaranga called for a dialogue between CRA and county bosses in reviewing of the formula.
“Even as we ask for review based on population, we should also consider some counties that have been marginalised over the years and those with high poverty index. We should desist from having a debate that may cause disunity in the country because all of us want resources,” Mr Akaranga said.
Already, the CRA has proposed a new method for allocations that will include personnel enumeration based on workers inherited by counties from defunct local authorities.
Mr Oparanya has asked Parliament to support a review of the equation so as to strengthen devolution.
“Currently, the population based allocation is at a mere 45 per cent.
Some counties with around 700,000 people get Sh4 billion and yet those with around 1 million people gets a mere sh7 billion. Where is equality in the formula? Population size determines the cost of service hence the need for review,” he said