Governor Kahiga wants new revenue sharing formula implemented

By Nyangari Wa Muthoni


Governor Mutahi Kahiga and County Assembly speaker John Kaguchia. They want the new revenue sharing formula implemented

Nyeri Governor Mutahi has called for the implementation of the Third Generation Revenue Sharing formula saying the formula will see his administration get an additional Sh400 million on top of its budgetary allocation.

The formula recommended by Commission on Revenue Commission (CRA) proposes to disburse funds to counties based on the analysis of the county’s needs in bid to ensure equity to all the 47 Counties.

 And although the proposal by the CRA which is mandated to review the revenue sharing formula has caused unease from Northern Frontier Counties who have since described it as anti-devolution and calling for the deferring of the same or one year, Nyeri governor has called for its implementation of the formula saying it’s good for Nyeri County.

Speaking after assenting into law Nyeri Covid-19 bill and the appropriations bill, the governor said the formula entails allocating formula based on people and not land and trees.

“There are some people opposed to the formula by CRA but the proposal seeks to ensure equity and equality since money can’t be allocated based on trees or land but the population should be the key parameter,” he said.

The proposal has generated heat from governors from North Eastern counties who stand to lose should the formula is implemented owing to their low population.

The governors have been pushing for land as the main parameter for revenue sharing a proposal that has been rejected by Mt Kenya region leaders.

The Mt Kenya leaders have been giving an example of the population of the whole of Northeastern counties which is 2.5 million persons compared to Kiambu County, a single county in Mt Kenya region with 2.4 million people saying a single county in North Eastern ends up with budgetary allocation of the whole of Mt Kenya Counties.

  Another concern from Mt Kenya region is the fiscal responsibility that is the amount of revenue that each county collects reasoning that counties from Northern Kenya contribute the least to the national kitty.

Mr Kahiga’s sentiments were echoed by Nyeri County Assembly Speaker John Kaguchia who said the formula would ensure development projects distributed equally to all the 47 counties based on the number of the electorates.

But the Frontier Counties Development Council chairman and Mandera Governor Ali Roba, said should the formula generated by the Commission on Revenue Allocation (CRA) be adopted, many counties stand to lose out on the shareable allocations.

Wajir County will be one of the biggest losers, with its allocation being slashed by by Sh.1.9 billion. Garissa will get a reduction of its monies by Sh1.2 billion, Tana River (Sh1.5 billion), Mombasa (Sh1.6 billion), Kwale (Sh995 million), Narok (Sh887 million) and Isiolo (Sh879 million). Mandera and Marsabit which will see their revenues drop by Sh1.8 billion each.

Kilifi is also to be affected with a margin of Sh878 million, Turkana (Sh450 million), Kitui (Sh219 million), Makueni (Sh302 million), Samburu (Sh294 million), Taita Taveta (Sh388 million), Tharaka Nithi (Sh367 million), and Vihiga (Sh361 million).

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