NAIROBI, Kenya Feb 6 – A row is simmering over the revenue sharing formula for the next four financial years following vehement opposition by senators over the proposed formula by the Commission on Revenue Allocation (CRA).
CRA chairperson Mary Wanyonyi had presented proposed Fourth Basis for Sharing Revenues among county governments for the financial years 2025/2026 to 2029/2030 which has attracted the wrath of senators.
During the senator’s midterm retreat in Naivasha, Wanyonyi defended the new revenue-sharing formula saying the previous one had not been fully implemented occasioning the changes.
Nairobi County Senator who doubles as the Deputy Minority Whip Edwin Sifuna vowed to oppose any revenue allocation formula that will portend any financing shortfall from previous financial years.
“I will not appreciate any formula that will make Nairobi or any other county lose money,” emphasized Sifuna.
Majority Whip Boni Khalwale (Kakamega) questioned the rationale behind replacing an existing system that was still functional.
“If the machine is working, you don’t have to fix it,” he remarked, signaling his skepticism about the need for a new framework.
Mandera Senator Ali Roba who chairs the Senate Finance Committee emphasized the importance of allocating more funds to counties based on the significance of the functions they perform.
He pointed out that counties are responsible for essential devolved functions and should therefore receive increased funding.
“Counties are holding devolved functions that are very basic. There must be a marginal increase of resources channeled to counties,” explained Roba.
Senate Majority Leader Aaron Cheruiyot urged the Senate Finance Committee to critically examine the proposal and provide accurate data to facilitate an informed decision.
He underscored the importance of evidence-based discussions, urging the committee to lead in scrutinizing key areas of the proposal.
Apart from concerns over the revenue-sharing formula, the lawmakers also criticized the CRA for failing to address the issue of counties that have consistently mismanaged funds.
Of concern, was why the revenue-sharing formula failed to instate mechanisms to ensure prudent use of resources by counties with a history of financial inefficiencies.
They proposed a reduction of the allocations to such counties to enhance fiscal prudence.
However, this was opposed by Deputy Speaker Kathuri Murungi who argued that the Senate should perform its oversight role, and impeach Governors who mismanage funds instead of punishing common citizens for the crimes committed by known individuals.
In the financial year 2025/2026 proposal, counties are set to receive Ksh. 417 billion
to ensure county governments could effectively perform their functions while considering their fiscal capacity, efficiency, and developmental needs.
According to the CRA, the new allocation formula was designed to address economic disparities within and among counties while promoting affirmative action for disadvantaged areas and groups.
With the proposal now before the Senate, legislators are expected to conduct a thorough interrogation of the formula before making a resolution when the House resumes its sittings next week on Tuesday.
