Kenya: President Kenyatta Pledges Sh50 Billion to Counties in Intervention to Seal Formula Deal

15 September 2020

Nairobi — President Uhuru Kenyatta has pledged an additional Sh50bn to counties in the next financial year 2021/22 in a bid to unlock the revenue formula stalemate which has been a contentious issue in the current financial year.

He however said the additional allocation will be pegged on country's economic perfomnace.

Kenyatta spoke at State House during a meeting attended with ODM leader Raila Odinga, Chairperson Council of Governors Wycliffe Oparanya and Senate Leadership on Tuesday.

He said the channeling more funds to the devolved units is part of strategy aimed at strengthening devolution.

"The meeting resolved that depending on the financial performance of the economy, the Government will, in the next Financial Year (2021/22), endeavor to allocate an additional Sh50 billion to Counties as part of efforts to strengthen devolution," State House Spokesperson Kanze Dena reported..

He urged Senators to urgently resolve the revenue sharing stalemate so to avoid disruption of service delivery in counties.

Senators are yet to pass the formula proposed Commission of Revenue Allocation after they failed for nine times to approve the formula.

Those present during the State House meeting included Majority Leader Samuel Poghisio, his deputy Fatuma Dullo, Majority Chief Whip Irungu Kang'ata and Minority Leader James Orengo.

Under the formula proposed 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.

Nairobi Senator Johnson Sakaja led the team opposing the committee Bill coming up with an alternate revenue formula proposal which was later backed up by an amendment fronted by Mithika Linturi (Meru) to change aspects of his proposal.

Senators have failed to agree on a formula for a record nine sittings.

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