A 12-member Senate committee formed to broker a deal on the contentious third basis revenue sharing formula on Thursday September 17 proposed a formula that will see all counties gain.
The committee co-chaired by Nairobi Senator Johnson Sakaja and his Bungoma counterpart Moses Wetangula announced a breakthrough during today’s meeting after weeks of deliberations.
In the new formula, which the members say will benefit all counties, takes into account eight parameters; Basic share (20 per cent), Population (18 per cent), Health (17 per cent), Poverty Level (14 per cent), Agriculture (10 per cent), Roads (eight per cent), Land (eight per cent) and Urban (five per cent).
Nairobi gains the highest amount at Ksh3.3 billion to push it’s total allocation to Ksh19 billion.
Kiambu and Nakuru counties gain Ksh2.3 billion and Ksh2.5 billion respectively in the new formula.
On the other hand, Tharaka Nithi, Nyamira and Vihiga counties get the least addition of Ksh289 million, Ksh324 million and Ksh414 million respectively.
Other members of the committee include Kipchumba Murkomen (Elgeyo Marakwet), Samson Cherargei (Nandi), John Kinyua (Laikipia), Susan Kihika (Nakuru), Steward Madzayo (Kilifi), Moses Kajwang (Homa Bay), Ledama Ole Kina (Narok), Mutula Kilonzo Jr (Makueni, Anuar Loitiptip (Lamu) and Mohamed Mahamud (Mandera).
The breakthrough comes two days after President Uhuru Kenyatta promised an additional Ksh50 billion to counties in the next financial year 2021/22 in a bid to unlock the revenue formula stalemate.
Speaking on Tuesday September 15 during a meeting at State House attended by ODM leader Raila Odinga, Council of Governors chairperson Wycliffe Oparanya and the Senate leadership, President Kenyatta, however, conditioned that the additional allocation will be pegged on country’s economic performance.
The Senate had for a record 10th time this week failed to agree on how counties should share Ksh316 billion from the national government.
The passage of the formula will solve the financial crisis in the counties.
On Wednesday September 16, Oparanya ordered counties to shut down from today over lack of funds.
In a statement, the Kakamega county boss told all governors to issue notice suspending all non-essential services and send all county workers on a two-week leave.
Oparanya also said that from Thursday health facilities will not admit any new patients. He said they will only provide minimal outpatient services.