We are now at the fourth generation formula. If you look at the first, second and third formulas, you realise that one or more things have always been added.
The reason is that development needs keep changing
Even as CRA does its research, it should examine factors that influence sharing of revenue which mainstreams equity. Thus, at the end of the day, you don’t have some areas getting more developed as others lag behind.
As a way forward, instead of talking about one-man-one-vote-one-shilling, we need to appreciate some areas are low potential and others high potential. If you look at Sessional Paper No 1 of 1965, the focus was on high-potential areas, resulting in a number of areas getting marginalised by that policy.
When we were drafting the 2010 Constitution, that was the thinking behind the Equalisation Fund.
This was so marginalised areas could be assisted to catch up with the rest of the country, even if not on par.
With that history in mind, what is important is letting people make all the proposals.
Some are saying one additional kilometre, others are even suggesting one additional tree. There are all sorts of proposals.
Let these proposals be handed over to CRA for a scientific test.
They can guide the country to come up with a formula to ensure those regions which are ahead currently, because of the earlier policies, don’t go very far from the rest.
They should ensure we have a formula that recognises that some areas – in terms of development – are ahead of others. CRA should come up with a formula to ensure marginalised areas are assisted to develop
It is equality versus equity. If we go the equality way, many regions would hurt.
If we go the equity way, we will be doing the right thing, as stated in the chapter of Public Finance in the Constitution. It is the question we are debating in the current budget estimates.
Let all the proposals come up but let us allow the CRA to present us with a formula that would help Kenyans move to the next level.
Kitui Central MP and vice chairman of Public Debt committee spoke to Star
