Governors oppose new revenue sharing formula citing flaws and unfairness
While agreeing with the governors that no county should lose money, members of the Senate’s Finance and Budget Committee, led by Mandera Senator Ali Roba, criticised the CoG’s presentation for lacking substantial counter-proposals.
Governors have opposed a new revenue sharing proposal, warning that its implementation could result in significant financial setbacks for numerous counties.
The county heads described the Fourth Basis of revenue sharing as flawed and discriminatory, arguing that it unfairly disadvantages many regions and could lead to substantial financial losses.
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In a meeting with the Senate Finance and Budget Committee, the Council of Governors (CoG), led by Kakamega Governor Fernandes Barasa, expressed concerns that the new formula would leave many counties worse off.
“The recommended allocation to counties is Sh417.425 billion. If you apply the CRA’s recommended formula to this allocation, 31 counties could lose a cumulative amount of Sh12.106 billion,” Barasa, the chairperson of the CoG’s Finance Committee, said.
The proposed revenue-sharing formula is based on five key parameters, with population carrying the highest weight at 42 per cent, equal share at 22 per cent, poverty at 14 per cent, income distance at 13 per cent, and geographical size assigned the lowest weight at nine per cent.
The governors argued that if implemented, the formula would negatively impact counties’ ability to deliver services. They appealed to the Senate to ensure that no county loses funding under the new proposal.
While agreeing with the governors that no county should lose money, members of the Senate’s Finance and Budget Committee, led by Mandera Senator Ali Roba, criticised the CoG’s presentation for lacking substantial counter-proposals.
“A lot of thought has not gone into coming before this committee on this presentation. This is a very critical issue that is going to affect you very seriously. You don’t criticise without making counter-proposals because otherwise, then it just becomes an academic exercise,” Roba said.
He directed the county heads to review their presentation and provide more in-depth, well-thought-out counter-proposals that could help the Senate create a more equitable and sustainable revenue-sharing formula.
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