• If the proposed formula is adopted, 18 counties - mainly less populous areas of North Eastern, Coastal and Eastern regions - will lose up to Sh17 billion.
• Senators whose counties were set to lose have vehemently rejected the formula but those gaining are throwing their weight behind it.
Image: EZEKIEL AMING'A
Senators on Monday are expected to discuss a contentious formula that will determine how counties share the Sh316.5 billion allocated to them in the budget.
The lawmakers have clashed bitterly over the proposed formula, putting the counties in an awkward situation that threatens to become a full-blown cash crisis.
They have convened a kKamukunji (informal meeting) at 10am on Monday to broker a deal on the third basis for revenue allocation among the 47 county governments.
Last week, Speaker Kenneth Lusaka was forced to defer a debate on the method proposed by the Finance and Budget committee after it emerged that the senators were split down the middle.
If the proposed formula is adopted, 18 counties - mainly less populous areas of North Eastern, Coastal and Eastern regions - will lose as much as Sh17 billion.
However, this amount will be shared between 29 others that are set to gain big.
Senators whose counties were set to lose have vehemently rejected the formula but those set to gain have thrown their weight behind it.
“The House was supposed to discuss the third basis of sharing of revenue but the report cannot be tabled in its current form,” Lusaka said, adding consenus was needed before the report was tabled.
“I am, therefore, giving directions that we have a kamukunji on Monday so we are taken through the report to enable us build enough consensus," the speaker told a special sitting on Tuesday last week.
“After the kamukunji, I will give further directions on when we will meet to have the report tabled and discussed."
The committee’s formula called the ‘Mithika Linturi formula’ is an improvement on the one proposed by the Commission on Revenue Allocation, the panel says.
It gives population a weight of 16 per cent, health (20), Agriculture (12), basic share (20), poverty (15), land area (5) and urban (four).
Among the biggest losers are Wajir county, which is losing Sh2 billion based on analysis of the Sh314 billion shareable revenues.
Others are Marsabit and Mandera that will each lose as much as Sh1.9 billion, Garissa (Sh1.6 billion), Tana River (Sh1.5 billion), Mombasa (Sh1.6 billion) and Kwale (Sh1 billion).
On Sunday, the two camps maintained their hard stance with each side pulling strings in their favour.
Those opposed to the formula - calling themselves the marginalised - have said the method ‘entrenches’ marginalisation of their areas and pledged to fight it tooth and nail.
Senators Mutula Kilonzo Jr (Makueni) and Johannes Mwaruma (Taita Taveta) whose counties are set to lose a combined Sh1 billion, said the reduction will hurt budget implementation.
“How will you explain to the people that we have lost a billion shillings? It is just not practical. We will reject it,” Mutula said.
Mwaruma said the counties expected to get the same amount of revenues as last year because the shareable revenue remained the same.
“How do you explain to a county that has already budgeted, employed people and even increased salaries that you are going to get less money. Does it mean they will sack people?” he asked.
The two lawmakers suggested that the current formula should be adopted as the third- generation formula.
But Finance and Budget Committee chairman Charles Kibiru (Kirinyaga) said the proposed formula is favourable, takes into account the latest population figures and ensures more counties benefit.
“We have the number. If they want us to retain the current formula, what about population? Are we going to use 2019 data or 2009? What they should talk about is how the Treasury will compensate the counties that are losing," Kibiru said.
Kiambu Senator Kimani Wamatangi, whose county is among the beneficiari, has defended the new formula saying it is not about being unfair to some counties, but ensuring all counties are treated equally.
“Marginalised counties have for the past seven years been allocated huge funds to speed up development while the developed ones were left with little for development.” Wamatangi said.
“This unfair revenue allocation cannot be allowed to continue. It will result in the creation of new marginalised regions or counties."
Mandera Governor Ali Roba, whose county is losing as much as Sh1.9 billion, said as the controversy dogs the sharing formula, “we have known the true friends of ASALs and Muslims in general."
“A friend in need is a friend indeed. This is a gesture we will never forget,” Roba said.
Edited by R.Wamochie