Senators on Thursday clashed as they put the Commission on Revenue Allocation on the spot over the controversial proposed revenue-sharing formula.
In the heated discussion during their retreat in Naivasha, senators whose counties are losing millions in the framework, vehemently rejected the formula proposed by the commission and questioned its rationale.
But those whose counties are marginally gaining in the formula backed the proposal.
The development rekindled memories of 2020, when senators failed in a record 10 attempts to agree on the third basis for revenue allocation among counties.
It took the intervention of then-President Uhuru Kenyatta to allocate the devolved units Sh53 billion more to ensure no county lost revenues.
After a detailed presentation by CRA chairperson Mary Wanyonyi, the senators sought to know how the commission arrived at the parameters and the final proposed formula.
The fourth basis for sharing revenues among local governments will determine how counties share revenue from 2025-26 to 2029-30.
The model that has triggered uproar has seen 31 counties getting lower revenue share, while 16 others have gained.
Among those whose allocation index has reduced compared to the current formula are Baringo, Bomet, Busia, Embu, Homa Bay, Kakamega, Nairobi, Narok, Nandi and Nakuru.
“If you bring a formula which is going to reduce money from some counties and you deny them the ability to perform their functions, then that is not the formula that should get the support of the Senate,” Nyamira Senator Okong’o Omogeni said.
The senior counsel dismissed the formula as one that would stifle and prevent the counties from optimally performing their functions.
“If you take the counties of Wajir, Mandera, Garissa and Marsabit, they are getting Sh7 billion more. From the total addition of Sh30 billion, Sh7 billion only benefits four counties. I think that is very unfair,” he stated.
In her presentation, Wanyonyi said CRA has assigned population the biggest weight, at 42 per cent. In the current formula, population weighs 18 per cent.
Geographical size has been given a weight of nine per cent from the current eight.
Equal share has been given a weight of 22 per cent from the current 20 while the weight for the poverty index has been retained at 14 per cent.
“To facilitate service delivery, the recommendation provides for an equal minimum allocation across all counties, using population and geographical size of a county as the key transfer parameters,” Wanyonyi said.
CRA has introduced the income distance index and assigned it a weight of 13 per cent.
However, the senators questioned where and how CRA came up with the income distance index.
“I have serious issues with income distance as a parameter. Where has that thing come from?” Kitui Senator Enoch Wambua posed.
“... is it the shared view of the commission? Or was there a dissenting view of the commission on the presentation? If you come to us in bad faith, then we treat you in bad faith,” he added.
Kirinyaga Senator James Murango warned the Commission not to expect the senators to support the formula which is skewed to disadvantage some counties.
“Those senators whose countries are losing money, they are opposing and those gaining revenue are supporting the formula. And it’s okay,” he stated.
However, in her response, Wanyonyi said CRA has cautioned the governments likely to be affected by proposing an enhanced allocation of Sh417.42 billion in the next fiscal year to ensure no county losses revenue.
“In implementing the Fourth Basis, a cushioning and stabilisation factor has been inbuilt in the framework to ensure no county government will get less than what they were allocated in the financial year 2024-25,” Wanyonyi said.
