Senators Reject Proposed Revenue Sharing Formula, Vow to Protect County Allocations
However, Senators argued that introducing a new revenue-sharing system was premature, especially since the existing one had yet to be fully implemented.
Kericho Senator and Senate Majority Leader Aaron Cheruiyot.
A section of Senators has strongly opposed the Commission on Revenue Allocation’s (CRA) proposed Fourth Basis for Sharing Revenues among counties for the 2025/2026 to 2029/2030 financial years.
The lawmakers, speaking during the second day of the Senate midterm retreat in Naivasha, expressed concerns over potential financial losses for some counties under the new formula.
The proposal, presented by CRA Chairperson CPA Mary Wanyonyi, seeks to allocate Ksh. 417 billion to counties based on parameters such as population (42%), equal share (22%), geographical size (9%), poverty levels (14%), and income distance (13%).
However, Senators argued that introducing a new revenue-sharing system was premature, especially since the existing one had yet to be fully implemented.
Senators Oppose County Budget Cuts
Sen. Boni Khalwale questioned the need to replace the current system, arguing that if it was functioning, there was no reason to change it.
“If the machine is working, you don’t have to fix it,” he said.
Nairobi Senator Edwin Sifuna took a firm stance against any formula that would reduce allocations to any county.
“I will not appreciate any formula that will make Nairobi or any other county lose money,” he stated.
On his part, Mandera Senator Ali Roba, who chairs the Senate Finance Committee, stressed the need to increase county allocations, citing the crucial role of devolved functions in service delivery.
“Counties are responsible for basic services, and there must be a marginal increase in resources allocated to them,” he said.
Call for Greater Oversight on County Spending
Beyond concerns about revenue distribution, Senators also criticized CRA for failing to address financial mismanagement in some counties.
They questioned why the proposal did not include provisions to curb misuse of public funds.
Some lawmakers suggested reducing allocations to counties with a history of corruption as a way to enforce fiscal discipline.
However, Senate Deputy Speaker Kathuri Murungi opposed this approach, arguing that citizens should not be punished for the failures of their leaders.
Instead, he urged the Senate to use its oversight role to impeach governors involved in financial mismanagement.
Senate to Review Proposal Before February 11 Sitting
Senate Majority Leader Aaron Cheruiyot emphasized the need for evidence-based discussions and urged the Finance Committee to conduct a thorough review of the proposal.
The Senate is now set to deliberate on the formula when it resumes sittings on Tuesday, February 11, 2025.
The debate over revenue-sharing remains a politically sensitive issue, with counties heavily reliant on equitable allocations to fund essential services, development projects, and governance.
However, Senators have vowed to ensure that no county loses funding under the proposed formula, signaling a potential showdown with the CRA in the coming weeks.
About Author
