There has been a stalemate on the formula that will see 19 counties drawn mainly from the North, Coastal region and Lower Eastern lose a cumulative Sh42 billion while 28 others stand to gain.
Nairobi Senator Johnson Sakaja and Majority Whip Irungu Kang’ata have separately filed amendments to the formula proposed by the Finance and Budget Committee.
The proposed formula by the Commission on Revenue Allocation (CRA) puts more weight on population.
This means counties with higher population will emerge as the biggest beneficiaries while those with low numbers will lose.
Senators want a minimum of Sh350 billion to be sent to counties going forward as debate on the contentious formula for sharing revenue among the 47 devolved units commenced Tuesday.
The Finance and Budget committee said the current Sh316.5 billion allocation was not enough to meet provision of services in the counties. Counties received a similar allocation in the previous financial year.
“We need to ensure that going forward, the basic annual minimum share of revenue to county governments should be set at Sh350 billion,” Charles Kabiru who chairs the committee said while initiating debate on the Third Basis for Sharing of Revenue among the 47 counties.
There has been a stalemate on the formula that will see 19 counties drawn mainly from the North, Coastal region and Lower Eastern lose a cumulative Sh42 billion while 28 others stand to gain.
Nairobi Senator Johnson Sakaja and Majority Whip Irungu Kang’ata have separately filed amendments to the formula proposed by the Finance and Budget Committee.
The proposed formula by the Commission on Revenue Allocation (CRA) puts more weight on population.
This means counties with higher population will emerge as the biggest beneficiaries while those with low numbers will lose.
Other parameters include health, agriculture, urban services, roads, other services and fiscal effort.
Article 217 of the Constitution stipulates that the revenue-sharing formula be reviewed every five years.
The formula is needed to guide the enactment of the yet to be approved County Allocation of Revenue (CAR) Bill, 2020.
The Bill provides for the sharing of revenue raised nationally between the two levels of government as well as guides release of cash to counties from the Consolidated Fund.
Last week, the Senate was forced to prematurely adjourn a special sitting called to consider the formula. It was the fourth failed attempt.
Senate Speaker Ken Lusaka made the call after chairman of Finance and Budget committee failed to appear in the Chamber to initiate debate on the contentious formula.
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