This archive report was first published on 12 July 2020.
As the Senate prepares to hold a special session to address the stalemate on the new formula for allocating cash to counties, it is imperative that they find an amicable way to resolve the issue. The Commission on Revenue Allocation (CRA) has crafted a new formula for sharing revenue based on functions, population, and poverty levels.
The revised method prioritizes funding for health services, which have been devolved to counties, while also taking into account population and poverty levels. However, the percentages have been revised, with counties with a large population but small land size set to receive more cash compared to those with small population but large land mass.
At least 18 counties, mainly in Northern Kenya and parts of Coast and the Rift Valley, are affected by the new formula, and are set to lose some cash they used to receive. In contrast, highly populated counties like Kiambu, which have high concentration of urban demographics, are bound to get more money.
The variance in funding has created an impasse, with senators and governors from the affected counties raising the alarm, arguing that they are being disadvantaged because of their population yet their regions have historically been marginalized.
However, according to the CRA, the new method will not only align funding to functions assigned to county governments and enhance service delivery, but they will also address developmental gaps.
As the Senate deliberates on the new formula, it is essential that they interrogate the principle behind it and make a decision based on equity and fairness, rather than party, ethnic, or political considerations.
