Proposed Revenue Sharing Formula Kenya

The president s central kenya backyard which has been complaining about the current revenue allocation formula as biased are pushing for the adoption of the proposed formula adding to the president s headache.

Proposed revenue sharing formula kenya. The formula determines how the counties will share money allocated to them for five financial years until. Nairobi kenya jun 27 the senate will hold a special sitting on tuesday to approve a proposed formula developed by the commission on revenue allocation that would enable county governments to share equitably the sh316 5 billion allocated in the financial year 2020 21. This is shared equally among the 47 counties. Kenya s representatives in pole after.

Under the proposed formula 29 counties are gaining while 18 are losing out in a radical shift from the first and second revenue sharing basis. The former prime minister joined president uhuru kenyatta and deputy president william ruto in calling for an end. Fe i revenue allocated to a given county on the basis of fiscal effort. The proposed method of sharing revenue among counties has sparked a major national storm.

Some senators have supported the proposed revenue sharing formula among counties for financial years from 2019 2020 to 2023 2024. It also proposed fiscal prudence and fiscal efforts as parameters for sharing revenue but it caused sharp. The formula proposed by cra would have seen 29 counties gain more revenue while 18 lose. La i revenue allocated to a county on the basis of land area factor.

In a special gazette dated june 26 senate speaker kenneth lusaka said he has summoned the house on the request of leader. Pi i revenue allocated to a county on the basis of poverty factor. Es i revenue allocated to a county on the basis of equal share factor. Going by the cra parameters it means that counties with high poverty levels and small populations will lose out on the equitable horizontal share compared to those with high populations.

The proposed formula gives more weight on the population as opposed to the current formula method that prioritises land mass.