This archive report was first published on 21 July 2020.
On Tuesday, July 21, 2020, hopes for an agreement on the contentious third revenue-sharing formula rose after the Senate narrowed down the gap to two proposals.
Speaker Kenneth Lusaka established a four-member ad hoc committee to harmonize the two proposals and find a breakthrough.
The committee, comprising senators Irungu Kang'ata, Mutula Kilonzo, Ledama Olekina, and Margaret Kamar, had until the end of Wednesday to develop a report and submit it for debate during a special sitting of the House.
Counties were allocated Sh316.5 billion in equitable shareable revenue in the 2020/21 financial year, which could not be shared among the counties in the absence of the formula.
Speaker Lusaka told the Nation that the committee was discussing and narrowing the gap between the competing sides.
Senators have rejected the formula developed by the Commission on Revenue Allocation (CRA), describing it as polarizing and perpetuating inequalities among devolved units.
Two proposals are on the table: one that seeks to postpone the commencement date of the third formula by two years, and another that applies the new formula to allocations over Sh316 billion.
