Senators clash over expanded list of counties benefiting from equalisation fund

A fierce dispute has gripped the Senate over the Sh16.8 billion Equalisation Fund after senators clashed over the controversial decision to expand the list of beneficiary counties from 14 to 34, a move now criticised as undermining the fund’s original purpose.

The fund, created under Article 204(1) of the Constitution, mandates that 0.5 per cent of all national revenue be used to improve access to basic services, such as water, roads, electricity and health facilities in marginalised areas. It was originally targeted at 14 counties, mainly in the Northeastern region.

But the framework was revised by the Commission on Revenue Allocation (CRA) and the previous Parliament to include 34 counties by focusing on marginalised sublocations and wards.

This change has triggered accusations that the fund has been hijacked to favour politically connected regions at the expense of truly disadvantaged ones.

During a heated session in the House, senators exchanged accusations of distorting the intent of the fund for local and political benefit.

“What happened? How did you, as senators, increase the number of beneficiary counties from 14 to 34?” asked Kakamega Senator Boni Khalwale.

He criticised the former Finance committee that approved the expansion, saying it added counties that do not meet the criteria for marginalisation.

“Among the counties added was Kericho, which enjoys rainfall 11 months in a year. They want to fight with Turkana over money meant to provide water for its people,” he said.

Khalwale further questioned the inclusion of his region. “I say this with maximum respect, no tribalism in my heart. Even back home in Bungoma, we are now beneficiaries of this fund, but we are not supposed to be. That must be re-examined.”

Mombasa Senator Mohamed Faki said the fund’s noble intention had been derailed. “The Equalisation Fund was created with a clear purpose, but its implementation has been marred by unfortunate decisions that have hindered its impact,” he stated.

He added that after new regulations were passed, 20 counties were added to the list, many of them controversially claiming marginalisation. “Even Kiambu was deemed marginalised.”

Kericho Senator and Senate Majority Leader Aaron Cheruiyot, who served on the committee that recommended the expansion, defended the decision.

He said the revision was based on a wider definition of inequality, noting that disadvantaged communities exist even within counties perceived as wealthy.

“It’s like assuming everyone in Karen is wealthy, yet within Karen lies the Kuwinda slum,” he said.

Cheruiyot pointed out that the CRA’s initial policy had received public petitions challenging its fairness.

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“Yes, Kericho gets rainfall most of the year, but in places like Soin and Soliat, the land is 90 per cent stone. What good is rainfall if you can’t access water?” he asked.

However, Nairobi Senator Edwin Sifuna dismissed the expanded list as unconstitutional and a betrayal of the fund’s founding principles.

“How do you drag water money from Mandera to Bungoma? There’s no justification for that,” he said.

He gave an example of the solar power plant in Loiyangalani, Marsabit, whose benefits do not reach residents.

“We have the largest solar power plant in Loiyangalani, Marsabit, but the locals don’t have power. They just watch the cables fly overhead to Suswa in Narok. And now the rest of you want to share their funds? We must be serious,” Sifuna said.

The disagreement has placed the Equalisation Fund Appropriation Bill, 2025, in limbo, threatening to delay the release of Sh16.8 billion already allocated to the fund in the current budget.

Senators now face growing pressure to resolve the dispute and uphold the constitutional promise to the country's most marginalised communities.