BROMANCE AT RISK

Revenue formula standoff test for handshake

Some of Raila's support bases are losing in revenue while those from the President's bedrock are gaining

In Summary

• Raila has told his allies to reject the new revenue formula, precipitating a stand off with Uhuru who is backing it. 

• Among the biggest losers are Wajir which is losing Sh2 billion, populous Kiambu and Kakamega counties have gained Sh1 billion each.

President Uhuru Kenyatta and ODM leader Raila Odinga.
BBI PALS: President Uhuru Kenyatta and ODM leader Raila Odinga.
Image: FILE

Tussles over a revenue sharing formula and the composition of key committees in Parliament could jeopardise the camaraderie between President Uhuru Kenyatta and ODM leader Raila Odinga.

The Star has established that the battle over the two key issues that pose a litmus test for the handshake, has degenerated into a full blown stalemate between the two leaders.

While Uhuru is said to be in support of a new revenue sharing formula before the Senate for approval, Raila has reportedly stood his ground and rallied his troops against it.

The contention is that some of Raila's support bases are losing in revenue while those from the President's bedrock are gaining. Raila has previously anchored his agenda on more resources to counties.

In the composition of committees in the National Assembly, Uhuru's men have rejected a protest by Raila's camp over inclusion of some anti-reform members into key committees.

On Tuesday, a team of the President's political strategists that held a meeting at a Nairobi hotel resolved that Majority leader Amos Kimunya should not amend the names proposed. This is despite protests from Raila's allies that the current list comprises members who are opposed to the Building Bridges Initiative.

The BBI is seen as the vehicle for wide-ranging reforms being pushed by Uhuru and Raila.  

“The reconstitution of committees is not meant to reward or punish any other member. The process is not based on support for the BBI,” an official within the rank and file of those advising the President on political matters said.

Raila's ODM party has accused Jubilee of not being serious with BBI.

However, the revenue sharing formula which seeks to cut resources to some counties populating Raila's strongholds could be the last straw that could break the camel's back.

According to the formula proposed by the Senate Finance and Budget committee, an improvement of the one proposed by the Commission on Revenue Allocation, 18 counties are set to lose up to Sh17 billion.

Less populous counties in the coastal, northeastern, eastern and parts of Rift Valley are biggest losers in the proposal formula while the gainers are mostly in Central Kenya and parts of Rift Valley.  

According to several senators who spoke to the Star, Raila has opposed the formula and has rallied his senators, even those whose counties are gaining, to defeat it on the floor.

Raila, who is still recuperating after a surgery in Dubai, reportedly wants the current formula retained as the third generation to give room for deliberations about the new method.

Uhuru, on the other hand, is said to be backing the proposal on the strength that more counties are benefiting.

On Tuesday, Senate Speaker Kenneth Lusaka was summoned to State House where he spent more than three hours in a meeting with the head of state.

On Monday, Lusaka canceled a Kamukunji called to build a consensus at the last minute over what he termed unavoidable circumstances.

It emerged that the President was behind the indefinite cancellation of the meeting that was expected to be heated.

Uhuru's deputy chief of staff Njee Muturi was at Parliament buildings on Monday where he relayed the President’s order to cancel the meeting.

“He sent Muturi to call off the meeting because it was going to be nasty and murky. They (Raila and Uhuru) are talking but I think the President will have his way,” a senator intimated to the Star.

In the Senate, the two camps were breathing fire with those whose counties are losing accusing their colleagues of plotting to perpetuate marginalisation.

More than 21 senators opposed the formula and told the President that he was being misled into believing the 'discriminative' method.

"These people are misleading you. They are messing up your name. Please forget about this formula," Wajir Senator Ali Ibrahim, whose county is losing Sh2 billion, said.

Addressing a press conference at Parliament Buildings, the legislators claimed the formula has been shrouded in politics, adding that it has been determined by forces outside Parliament to disenfranchise some regions.

"The law states that if there is no resolution, then the existing formula is still valid," Mandera’s Mohamed Mahmud said.

"There is absolutely no reason why we should cut revenues to some counties. That is unfair and we won’t allow it.”

The senators are drawn from Coast, Northeastern, Eastern and Nyanza (Kisii and Nyamira) regions.

"There is nowhere in the Bible or Quran where it is stated that you forcefully take away from one person to give to another. We are human beings and we cannot allow our heads to be chopped. If our money is taken away, it means there is no devolution," Garissa Senator Yusuf Haji said.

ODM national treasurer Timothy Bosire, a key ally of Raila, said the matter should be handled carefully with a view to addressing past mistakes that left some counties allocated less resources despite their huge populations.

“Some counties have been unfairly denied resources in the past. For instance, Nyamira should not lose any money, instead it should gain. Nyamira is densely populated with a high poverty level,” he said.

The ex-Kitutu Masaba MP asked leaders to demand justice in the revenue formula.

Nandi Senator Samson Cherargei, whose county is the biggest winner said, “The revenue formula proposed by Finance committee means that money is allocated based on the population as opposed to land. The marginalised areas have been catered for under equalisation fund as provided for by the Constitution,” Cherargei said.

He said the current formula has been discriminating to many counties with high population for the last eight years “yet counties allocated a lot of revenue can’t even absorb the money”.

The committee’s formula, dubbed ‘Mithika Linturi formula’ gives population a weight of 16 percent, health (20), Agriculture (12), basic share (20), poverty (15), land area ( five) and urban (four).

Among the biggest losers are Wajir which is losing Sh2 billion based on analysis of the Sh314 billion shareable revenues.

Others are Marsabit and Mandera which will each lose up to (Sh1.9 billion), Garissa (Sh1.6 billion), Tana River (Sh1.5 billion), Mombasa (Sh1.6 billion), and Kwale (Sh1 billion).

Narok will lose (Sh981 million), Isiolo (Sh869 million), Kilifi (Sh859 million), Turkana (Sh547 million), Kitui (Sh432 million), Makueni (Sh423 million), Samburu (Sh403 million), Taita Taveta (Sh399 million), Tharaka Nithi (Sh338 million), and Vihiga (Sh239 million).

The biggest gainers are Nandi which has earned a Sh1.3 billion of the shareable revenue. Its neighbours Uasin Gishu and Nakuru have also increased their revenue by Sh1.1 billion each.

The populous Kiambu and Kakamega counties have been allocated Sh1 billion each in the new formula.

Trans Nzoia (Sh994 million), Bungoma (Sh926 million), Kirinyaga (Sh762m), Bomet (Sh730m), West Pokot (Sh692m) and Baringo (Sh663m).

Others are Siaya (Sh586 million), Migori (Sh574m) and Kericho (Sh556m), Busia (Sh559m), Machakos (Sh551m), Laikipia (Sh523m) and Embu (Sh504m).

 

Edited by R.Wamochie

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