SENATE STALEMATE

Vihiga to lose Sh361m in proposed cash-sharing formula — Osotsi

18 counties from the Coast, Northeastern, Nyanza, Rift Valley and Eastern will forgo up to Sh17 billion

In Summary

• The MP said the loss of Sh361 million from the budget would derail the county's development spending and payment of pending bills. 

• Already, the Controller of Budgets has notified Vihiga to pay up Sh700 million owed to suppliers within the 2020-2021 financial year. 

ANC Nominated MP Godfrey Osotsi in a past event in Luanda sub-County
Vihiga ANC Nominated MP Godfrey Osotsi in a past event in Luanda sub-County
Image: MARTIN OMBIMA

ANC Nominated MP Godfrey Osotsi has opposed the proposed revenue sharing formula because Vihiga county will lose Sh361 million of funding.

He said the loss of Sh361 million from the budget would derail the county's development spending and payment of pending bills. 

Already, the Controller of Budgets has notified Vihiga to pay up Sh700 million owed to suppliers within the 2020-2021 financial year. 

Senators were on Thursday yet to agree on the formula which will determine how the 47 counties will share their revenue in the next five years.

The lawmaker urged those counties that the new cash-sharing formula favours to stand in solidarity with those who might lose out. 

Revenue sharing should not be part of our daily politics because some of the counties are going to suffer badly, Osotsi said.

 
 
 
 

“The new formula for revenue sharing will discriminate against those counties that will lose their share from the Treasury. We need an equitable sharing formula of funds from the Treasury and not a plan that will cripple other regions in terms of development,” Osotsi said.

The MP said 18 counties from the Coast, Northeastern, Nyanza, Rift Valley and Eastern will forgo up to Sh17 billion under the new formula. 

“Governor Wilber Ottichillo is likely to face hiccups in managing the county if the formula is factored in,” Osotsi said.

The lawmaker wants Senator George Khaniri to lobby his counterparts in the Senate to help Vihiga. 

Osotsi said Vihiga is the only county in Western and Nyanza regions that is going to lose on the new formula as others gain.