Senators fail to agree on revenue sharing formula

Senators have failed to agree on a new formula to be used to share revenue among counties.

The Commission on Revenue Allocation (CRA) had proposed that allocation to Nairobi be capped so that more money can go to less developed counties.

While senators from rural counties supported the idea, their colleagues from counties in urban areas vehemently rejected it.

And now, the county will continue using the current formula, which some sections describe unfair.

Some of the senators who spoke at the meeting with CRA in Mombasa over the weekend said they needed a formula that will ensure less developed counties get more money. They want a formula that reflects the diverse needs of counties.

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Senate Speaker Ekwee Ethuro called for a formula that will ensure more resources go to the counties.

“This is an opportunity ensure equitable distribution of resources,” said Mr Ethuro. He asked the Finance Committee and CRA to develop a formula within three weeks and present it to the Senate for debate and possible adoption.

Senators voted down another formula when it was taken to the House early this year, saying it favoured more developed counties.

The formula had proposed that 45 per cent of the revenue be shared according to population in each county and 25 per cent of the remaining money shared out equally. At least 18 per cent would be shared out according to extent of poverty and eight per cent according to land area.

The lawmakers said the formula was not all-inclusive and had ignored many key factors.

Mr Ethuro urged the lawmakers to be willing to “give and take” to ensure passage of the new formula when it is brought to the House.

“This is a moment of reckoning. It is a moment of give and take and we can build a compromise to take our country forward,” he said.

CRA chairman Micah Cheserem said the team only recommend the formula and expected senators to fine-tune it when it is taken before them for adoption.