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Senators reject new revenue sharing formula for counties
The Senate in session.
What you need to know:
- Kiambu Senator Karungo wa Thang'wa warned that adoption of the formula in its current form would result in most counties receiving less revenue.
- “This is the most important exercise in the life of the Senate, to cushion counties against rogue governments,” he said.
Senators have adopted a bipartisan approach to resolve the impasse over the new revenue sharing formula for counties.
The resolution came after the senators rejected the proposed county revenue sharing formula for the 2025/2026 to 2029/20230 financial years, saying it disadvantages most counties.
According to the lawmakers, the formula proposed by the Commission on Revenue Allocation (CRA) used parameters that were not scientific and ignored critical factors in the devolved units.
Narok Senator Ledama Olekina said the committee with members drawn from the Majority and Minority sides will help to avoid a deadlock in the House.
“Before this CRA report is tabled in Parliament, the Majority and Minority should form a broader team to seek consensus. What I’m seeing is that this report will come to the House and it will be rejected,” said Mr Olekina.
“This committee should go through the recommendations of the CRA and seek consensus because we don’t have time.”
In a meeting with CRA Chairperson Mary Wanyonyi during the ongoing mid-term retreat in Naivasha, senators said they will not agree to any formula that disadvantages even one county.
Vihiga Senator Godfrey Osotsi said as ODM lawmakers, they have already taken a position that they will reject the new formula when it comes up for consideration in Parliament.
“As ODM, our position is that no county should lose money no matter what formula we come up with,” Mr Osotsi said.
Nyamira Senator Okong’o Omogeni said: “If you come up with a formula that denies some counties money to carry out their functions, it should not be supported by the Senate. There must be equity and fairness to all counties.”
Mr Omogeni said some parameters used by the CRA in the proposed formula, such as income, were not scientific and would not help counties.
If approved in its current form, counties that will lose out include Kakamega (Sh1.345 billion), Kilifi (Sh1.256 billion), Turkana (Sh1.195 billion), Kwale (Sh926 million), Kisii (Sh788 million) and Nakuru (Sh720 million). Others include Nairobi, which will lose Sh667 million, Nyeri (Sh502 million), Mombasa (Sh463 million), Narok (Sh357 million), Makueni (Sh319 million), Kisumu (Sh266 million), Nandi (Sh265 million), Nyandarua (Sh202 million) and Kitui (Sh200 million).
Mandera Senator Ali Roba accused the CRA of drastically altering the current formula, warning that it risks stirring emotions in Parliament and among governors just like the third formula.
“The commission should not change the formula so drastically that even senators find it difficult to understand,” said Mr Roba, whose Budget committee will consider the formula then present a report to the House.
Kiambu Senator Karungo wa Thang'wa warned that adoption of the formula in its current form would result in most counties receiving less revenue.
“This is the most important exercise in the life of the Senate, to cushion counties against rogue governments,” he said.
Machakos Senator Agnes Kavindu opposed the new formula, saying it was discriminatory because some counties were losing while others were gaining and yet it was supposed to be fair.