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Kenyan Senate passes the revenue sharing bill

Sep 19, 2020(Nyamilepedia) — The senate unanimously agreed on the third generation county revenue allocation formula after months of disagreeing.

Kenyan senate in a session(Photo credit: supplied)

“Today we saw a smoke that is white. We have a solution. We have a solution for the Republic of Kenya,” Nairobi senator Johnston Sakaja said.

Senators agreed upon the formula after a twelve-person committee came up with a win-win formula.

In the new amendment, no county will receive less money than it received in the previous financial year 2019/2010.

The bill will see the treasury add 53 billion to the equitable and it will rise from the current 316 billion to 370 billion.

“The protracted process that we took has been able to bring to our counties an additional 53.5 billion shillings. It has not been in vain, it has borne fruits and I want to encourage this house to remain steadfast, steady and be the last line of defense of the doctrine of devolution in this country,” Wetangula said.  

In the new formula, all counties will gain with Nairobi being the dominant beneficiery.

Nairobi will gain a tatal of 3.3 billion to bring its allocation to 19 billion. Other high gainers will include Nakuru and Kiambu with and addition of 2.5 billion and 2.3 billion respectively.

This formula has taken into consideration eight parameters.

These parameters are Basic share at 20 per cent, Population 18 per cent, Health 17 per cent, Poverty Level 14 per cent, Agriculture ,10 per cent, Roads 8 per cent, Land 8 percent and Urban 5 per cent.

It will start working from the financial year 2021/2022 to 2024/2025. 

This means that for this year, the allocation will still remain at 316 billion and every county will receive the same amount it received in the previous year 2019/2020.

The senate have forwarded the bill to the president for it to be signed.

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