CRA

Revise revenue-sharing formula to match population, CRA told

Kiambu deputy governor Rosemary Kirika says populations have outgrown their previous revenue share.

In Summary
  • She asked the government to use economic experts to reevaluate the current formula, given that the population of the country has grown.
  • Speaking on Tuesday, the deputy governor said the formula used had some issues that needed to be addressed urgently.
Kiambu deputy governor Rosemary Kirika speaking at Holy Eucharist Catholic church King'eero Parish.
Kiambu deputy governor Rosemary Kirika speaking at Holy Eucharist Catholic church King'eero Parish.
Image: GEORGE MUGO

Kiambu deputy governor Rosemary Kirika has asked the government to consider revising the current revenue-sharing formulae to counties and constituencies.

She said some leaders have opted to push for the one-man, one-vote, one-shilling formula since they feel some issues were not being addressed adequately owing to perceived funding disparity.

Kirika was, however, quick to ablsove President William Ruto’s government from blame but asked his adminstration to nonetheless consider the views of the electorate.

“When you see people raising their voices against a formula that is being used by the government to do something, then just know that there is something wrong. Our people are learned and they follow issues so well” she noted.

Speaking on Tuesday, the deputy governor said the formula used had some issues that needed to be addressed urgently.

She asked the government to use economic experts to reevaluate the current formula, given that the population of the country has grown, with some regions having so many residents than others.

Kirika spoke as Kenyans poured on the streets of Nairobi to protest against proposed new taxes in the Finance Bill, 2024.

Kenyans feel the proposals as contained in the Bill and 2024-25 Budget will worsen the tax burden to citizens and inflate the cost of living.

The deputy county boss asked the government through the Commission for Revenue Allocation and the National Treasury to hold public debates on the current formula to collect public views on merits and demerits.

“We want the CRA and the Treasury to enlighten the general public about the formula they use. By so doing, they will see what has changed and what needs to be amended so that all these noises can come to an end,” she said.

During the exercise, the CRA and the officials concerned can work with a team of experts, Kirika said.

Simon Wainaina, an economic expert, noted that the formula used by the government was the best but it needed to be updated with time, owing to country's population growth.

“This country is growing fast. Some counties were growing than others. The formula used need to be rechecked,” he concured with the deputy governor.

Proponents of the one-man, one-vote, one-shilling contend that regions should be allocated revenue based on their population to ensure funding matches demand.

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