, NAIROBI, Kenya Nov 23 – Nairobi, Turkana and Mandera will get the highest allocation while Lamu and Tharaka-Nthi will get the lowest share if Parliament adopts a new method of sharing cash among the 47 counties.
A report by Parliament’s Budget Committee recommends that the population parameter under the allocation formula released by the Commission on Revenue Allocation be slashed to 45 percent of the total allocation, down from the initial 60 percent.
The report which was submitted in the House by committee vice-chairman Alfred Sambu (Webuye) said CRA’s formula presented to the committee was agreeably, the best compromise to ensure equitable distribution of the Sh203 billion revenue among the counties.
“After wide consultations with key stakeholders and after taking into consideration views emerging from members of the public, the committee agreed on key parameters that will form the basis for revenue allocation, namely population (45 percent),” said the committee in its report. “This is a living formula and could be amended in the subsequent years should need arise.
They agreed with the commission that the population parameter still account for the largest criteria in sharing out the Sh203 billion which represents 33 percent of the national revenue collected by the Treasury in the last audited financial year against the 15 percent minimum proposed under the Constitution.
The committee agreed with the commission’s proposal that Sh407 billion of the revenue collected will go to the national government.
The Poverty Index will account for 20 percent while land area will account for eight percent. Basic equal share will account for 25 percent while the fiscal responsibility was maintained at two percent.
Each county will get a uniform allocation of Sh1.08 billion per county.
Based on the formula, Nairobi, with a population of Sh3.1 million, will receive Sh10.1 billion while Turkana with a population of 855,399, will get Sh8.1 billion in the 2012/2013 financial year.
In the bottom five are Lamu, which will receive Sh1.6 billion, Isiolo Sh2.3 billion while Tharaka-Nithi will receive Sh2.4 billion, Elgeyo Marakwet Sh2.5 billion and Taita Taveta Sh2.58 billion.
The Treasury also set aside Sh3 billion for the Equalisation Fund comprising five percent of the national revenue.