Monday August 17, 2020 – President Uhuru Kenyatta and ODM leader, Raila Odinga, seem to be having their way on the controversial revenue sharing formula which has divided the Senate.
This is after Governors threw their weight behind the proposal to freeze the implementation of the disputed revenue sharing formula until the Counties’ vote is increased to Sh348 billion.
The Governors support a proposal by Nominated Senator, Petronilla Were, that Counties continue with the expired second generation formula that shared out Sh316.5 billion until they receive an additional Sh31.5 billion from the exchequer.
The proposal is said to have the backing of President Uhuru Kenyatta and ODM leader, Raila Odinga.
The formula differs from the one fronted by Senator Mithika Linturi, and which has the backing of Deputy President William Ruto.
Linturi’s formula proposes to cap the equitable share at Sh270 billion and the difference of Sh46.5 billion be subjected to the Commission on Revenue Allocation (CRA) sharing formula.
The proposal backed by the Governors will ensure that no County losses funds.
However, a closer scrutiny of the formula shows that nine Counties stand to lose more than Sh2.5 billion, with Mandera leading with a loss of Sh1.3 billion.
Were’s proposal differs from that of Senator Johnson Sakaja in that while Sakaja’s formula sought to retain the status quo and cap the baseline at the Sh316.5 billion allocated in the last budget and the current one, with amounts over and above the figure pegged on the CRA proposal, Were’s additional figure is clearly defined at Sh31.5 billion.
Ahead of today’s crucial vote, the Council of Governors (CoG) has officially voiced its support for the Were formula.
The council’s chairman, Governor Wycliffe Oparanya, called on the divided Senate to adopt the amendments by Were so that Counties can begin to receive shareable revenue.
The Kenyan DAILY POST