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ODM leader Raila Odinga/CFM-FILE.

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Raila backs the adoption of CRA revenue sharing formula unamended

NAIROBI, Kenya Jul 27   – Orange Democratic Movement (ODM) Leader Raila Odinga has called on Senators to adopt the third basis formula for sharing revenue among counties in order to allow for the disbursement of the funds.

The former Prime Minister joined President Uhuru Kenyatta and Deputy President William Ruto in calling for an end to the debate which has seen Senators defer the vote on the crucial framework for the three occasions in order to build consensus.

Odinga’s intervention on Monday came at a time when Senators mostly from his Minority Coalition are engaged in a war of words with those from the ruling Jubilee Party who support the formula saying that they are reneging on a cooperation pact he made with the President in March 2018.

The ODM Leader said that the other issues being raised can be forwarded to the Commission on Revenue Allocation (CRA), for future consideration adding that resources recommended are adequate if Kenya eliminates corruption.

“The resources currently being recommended can adequately serve our counties if we eliminate corruption in addition to heavily punishing those perpetuating the vice both at the national and county levels. Luckily, the war on corruption is yielding fruits and should safeguard public finances,” he said.

Senate Majority Whip Irungu Kang’ata (Muranga) over the weekend said the Senate will not give room for further negotiations adding that the session slated for Tuesday, July 28, shall be the last one.

“We shall not have another adjournment on this bill and it shall be a matter of ‘do or die. If for any reason the bill does not sail through, then we might have to reconsider our stand on the BBI,” he remarked.

Governors will be keen to see if the formula whose impasse has stalled approval of the County Allocation of Revenue (CAR) Bill, 2020 will be passed on Tuesday.

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The new formula is a radical shift as it expands the parameters for the shareable revenue. It puts the health index at 17 per cent, agriculture 10 per cent, county population 18 per cent, basic share index 20 per cent, land area eight per cent and rural access at four per cent.

The others are poverty 14 per cent, urban households five per cent, fiscal effort (revenue collection) two per cent and prudent use of public resources at two per cent.

The Bill provides for the allocation of revenue raised nationally and conditional allocations among county governments for the financial year 2019/2020 as well as the transfer of the county allocations from the Consolidated Fund.

In the proposed formula by the Senate Finance and Budget Committee, 19 counties drawn from the North, Coast and Lower Eastern counties risk losing a cumulative of Sh42 billion while 28 counties stand to gain, a disparity that has been the bone of contention.

The proposed formula puts a premium on each county’s population with devolved units with huge populations set to be major beneficiaries and those with small population risk losing billions of shillings.  

Mandera County leads in the counties that are set to lose monies at Sh2 billion followed by Wajir, Kwale and Kilifi which are set to lose Sh1.4 and 1.2 billion respectively.

Counties set to gain include Kiambu which will be awarded Sh1.3 billion, Nairobi at Sh1.2 billion, Uasin Gishu at Sh983 million, Nandi, Kajiado and Nakuru will gain about Sh700 million shillings, Laikipia and Trans Nzoia will gain over Sh600 million.

Article 217 of the Constitution stipulates that the revenue-sharing formula be reviewed every five years.  

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