Kenya: Counties Revenue Impasse Finally Resolved

17 September 2020

Nairobi — The Counties Revenue impasse was finally been resolved Thursday, after Senators unanimously voted in support of the third basis formula for funds allocation after 10 failed attempts.

41 legislators voted, with no one opposing the formula which was earlier agreed to by the 12-member committee formed to resolve the standoff.

"The results are as follows, abstentions zero, nays zero, eyes 41. The eyes have it," House Speaker Ken Lusaka announced after the voting process.

Nairobi Senator Johnson Sakaja began by going through the report which was supported by Bungoma Senator Moses Wetangula -- and the two legislators maintained that no county shall receive shareable revenue less than what they received in the last financial year.

"The protracted process that we took has been able to bring to our counties an additional 53.5 billion shillings. It has not been in vain, it has borne fruits and I want to encourage this house to remain steadfast, steady and be the last line of defense of the doctrine of devolution in this country," Wetangula said.

The Senate had failed, for a record 10 times, to agree on the best formula to be used in disbursing funds to the counties prompting the Council of Governors to shut counties for lack of money on Wednesday.

In the formula that will now be used to disburse Sh316.5 billion to the counties, no county will receive money less than what they received in the year 2019-2020 financial year.

The newly passed formula takes into account eight parameters including Basic share at 20 per cent, Population 18 per cent, Health 17 per cent, Poverty Level 14 per cent, Agriculture ,10 per cent, Roads 8 per cent, Land 8 percent and Urban 5 percent.

Nairobi will get the highest amount at Sh3.3 billion bringing its total allocation to Sh19 billion, followed by Nakuru County which will gain extra Sh2.5 billion to bring its total allocation to Sh13 billion while Kiambu County will receive extra Sh2.2 billion to raise its allocation to Sh11.7 billion.

Tharaka Nithi will get the least addition of Sh289 million to raise its total allocation to 4 billion while Lamu County which often receives the least revenue will have its total allocation rise to Sh3.1 billion after gaining an extra Sh510 million.

The formula will now see counties receive Sh370 billion starting 2021-2022 to 2024 to 2025 financial years.

The Senate Committee further called on the Commission on Revenue Allocation (CRA) to take into account its resolutions.

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