New revenue sharing formula boosts least financed counties

Tharaka Nithi Senator Kithure Kindiki photo:courtesy

Counties that have been receiving the least disbursement since 2013 are the biggest gainers in a revised revenue-sharing formula adopted by the Senate.

Taita Taveta, Marsabit, Kilifi, Kwale, Tana River and Wajir will get extra cash in their baskets but some counties will get insignificant increments.

Departing from the previous allocation mechanism where Nairobi, Turkana, Mandera, Kakamega and Bungoma took the lion’s share, while Lamu, Tharaka Nithi, Taita Taveta, Elgeyo Marakwet, and Isiolo got the least allocations, more funds will now go to these counties.

This year, Senate used the second generation formula, which pegs the Sh302 billion equitable share on population at 45 per cent, basic equal share at 26 per cent, poverty at 18 per cent, land area at eight per cent, fiscal responsibility at two per cent, and development factor at one per cent.

“The allocation ratio used in the 2016-2017 financial year was based on the first generation formula. The allocation ratio used in 2017-2018 was based on the second generation formula approved by the Senate on April 20, 2016, and took into account the published census results for Garissa, Wajir and Mandera counties,” explained Tharaka Nithi Senator Kithure Kindiki.

Prof Kindiki sponsored the County Allocation of Revenue Bill 2017, which spells out the Sh302 billion shareable revenue and Sh43 billion conditional allocation to counties.

Nairobi has been allocated Sh15.4 billion in the next budget, with Turkana receiving Sh10 billion, down from Sh11.3 billion in the current budget.

The new formula will see Marsabit get Sh6.5 billion, up from Sh5.5 billion, while Kitui has been allocated Sh8.6 billion up from Sh7.8 billion.

Kwale was allocated Sh7.2 billion up from Sh5.5 billion, while Laikipia got a Sh800 million boost to see it budget for Sh4.5 billion.

Kajiado’s allocation was increased to Sh5.8 billion, up from Sh 4.7billion, and Kiambu got Sh9.7 billion up from Sh8 billion.

“Kilifi will get Sh9.9 billion from Sh8 billion last year. The same applies to Kirinyaga that will get Sh4.4 billion from Sh3.8 billion,” explained Kindiki.

Makueni Senator Mutula Kilonzo Jr said the formula was arrived at through consensus.

“There were parameters like population that if touched, many counties were going to be disadvantaged. We argued on the issue of poverty and development factor,” explained Mr Kilonzo.


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