Counties’ Sh316bn sharing formula stalemate persists

Counties are staring at cash crisis after the Senate failed to strike a deal on the formula for sharing Sh316.5 billion among the 47 devolved units.

The stalemate means counties face a cash crunch that is likely to ground crucial services to a halt.

The formula is needed to guide the enactment of the yet to be approved County Allocation of Revenue (CAR) Bill, 2020.

The Bill provides for the sharing of revenue raised nationally between the two levels of government as well as guides release of cash to counties from the Consolidated Fund.

Senators are sharply divided over the formula that would see 19 counties drawn mainly from the North, Coast and Lower Eastern counties lose a cumulative of Sh42 billion while 28 others stand to gain.

The proposed formula by the Commission on Revenue Allocation (CRA) puts more weight on population.

This means counties with higher population will emerge as the biggest beneficiaries while those with low numbers will lose.

Article 217 of the Constitution stipulates that the revenue-sharing formula be reviewed every five years.

The Senate was forced to prematurely adjourn a special sitting called to consider the formula. It was the fourth failed attempt.

Senate Speaker Ken Lusaka made the call after chairman of Finance and Budget committee Mwangi Githiomi failed to appear in the Chamber to initiate debate on the contentious formula.

“Now that the mover of the motion is not here, my request would be that we consider adjourning to a later date so that we make conclusions on the matter,” he said and proceeded to adjourn the session to next week Tuesday.

Less populous Mandera County tops the list of counties earmarked to lose up to Sh2 billion while the highly populated Kiambu will gain Sh1.3 billion more under the new formula.

Wajir, Kwale and Kilifi counties will lose Sh1.4 billion and 1.2 billion, respectively while Nairobi will gain Sh1.2 billion, Uasin Gishu (Sh983 million), Nandi, Kajiado and Nakuru Sh700 million each.

Laikipia and Trans Nzoia will gain over Sh600 million each.