Revenue Sharing Formula Kenya

The formula proposed by cra would have seen 29 counties gain more revenue while 18 lose.

Revenue sharing formula kenya. It also proposed fiscal prudence and fiscal efforts as parameters for sharing revenue but it caused sharp. 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 method of sharing revenue among counties has sparked a major national storm. 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.

The council of governors warns that it will shutdown county governments over the revenue sharing formula standoff in the senate. Give money to people not land in determining the third generation formula it s important that functions be properly cost to ensure optimisation of service delivery to. La i revenue allocated to a county on the basis of land area factor. Nairobi nakuru kiambu and turkana will get the lion s share of the billions set to be allocated to the counties.

The formula determines how the counties will share money allocated to them for five financial years until. The former prime minister joined president uhuru kenyatta and deputy president william ruto in calling for an end. Nairobi kenya jul 27 orange democratic movement odm leader raila odinga has called on senators to adopt the third basis formula for sharing revenue among counties in order to allow for the disbursement of the funds. Pi i revenue allocated to a county on the basis of poverty factor.

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. Es i revenue allocated to a county on the basis of equal share factor. In a special gazette dated june 26 senate speaker kenneth lusaka said he has summoned the house on the request of leader. In the formula approved on thursday no county will lose revenue.

Fe i revenue allocated to a given county on the basis of fiscal effort.