Githae reduces funds for running counties by 25 pc

The Treasury has proposed slashing funds for running counties because the devolved structures will not be in place until after the General Election in March next year.

Commission of Revenue Allocation secretary George Ooko said only Sh148 billion had been allocated to the 47 counties, 25 per cent less than the Sh200 billion the commission had requested last month.

“We will only need to use the money in the first three months of 2013 since it is only after the elections when we will start having county governments,” said Mr Ooko.

The commission proposes to share 20 per cent of the amount equally among the counties while 12 per cent will be shared according to the poverty levels in each county.

Six per cent and two per cent of the monies are to be shared according to land area and how well each county utilises its resources. The bulk of the money will be shared according to the population.

The Sh120 billion of the Sh200 billion was to be shared based on population size, Sh40 billion was be shared out equally, Sh24 billion based on the poverty index, Sh12 billion on land area and Sh4 billion on efficency.
But with the Sh148 billion, only Sh88.8 billion will be available to be shared based on populations, while Sh29 billion instead of Sh40 billion will be availed for equal distribution.

The Sh24 billion to be shared based on poverty index will come down to Sh17 billion.

Instead of Sh12 billion meant to be shared based on land area and Sh4 billion based on efficiency, Sh8 billion and Sh2 billion will be availed respectively.
Some members of parliament from marginalised areas plan to oppose the criteria, saying it it does not distribute resources equally.

The top five beneficiaries in the allocations, as per the current schedule are Nairobi which stands to get Sh11.7 billion, Kakamega Sh7.3 billion, Bungoma Sh7.2 billion, Nakuru Sh6.9 billion and Kiambu with Sh6.6 billion.

Lamu, which is the smallest of the 47 counties, will receive Sh1.4 billion, Isiolo Sh2 billion, Samburu Sh2.3 billion, Taita-Taveta Sh2.3 billion and Tharaka-Nithi Sh2.4 billion.