Counties scramble for cake

By LUKE ANAMI

The stage is set for a battle in Parliament over the proposed formula to be used by the State to allocate revenues to counties.

MPs in populous counties like Nairobi, Kiambu, Bungoma, Nakuru and Kakamega are spoiling for a fight when the matter comes up before the House. The five counties were the biggest losers after the Commission on Revenue Allocation ( CRA) reviewed its template for sharing the national cake between the counties. CRA reduced the size of the population segment of the formula thereby cutting Sh3.9 billion in total from the five counties’ budgets. This is based on the 2011-2012 Budget used by CRA for purposes of crafting the formula. 

With a reduction of as much as Sh1.6 billion, Nairobi County, with a population of 3.1 million, lost the most following the review of the Commission of Revenue Allocation’s formula.

Marginalised counties like Turkana County gained the most after poverty index segment of the formula was raised as a measure for division of the revenue, translating to Sh40 billion.

Turkana, with a population of 855,399, would get Sh2.4 billion more than its initial allocation in April. Mandera, with an increment of Sh1.2 billion, is the second biggest beneficiary should the new formula be implemented.

Biggest loser

Kilifi and Garissa had their allocations increased by Sh300 million and Sh400 million respectively.

After Nairobi, Kiambu County was the other biggest loser with its previous allocation reduced by Sh700 million. Nakuru and Bungoma Counties each lost Sh600 million.

These are the consequences of the review of the CRA that now recommends that the poverty index segment of the template account for 20 per cent of allocations, up from 12 per cent of the Sh203 billion, which would be shared out among the 47 county governments for the 2012/2013 financial year.

Predictably, the revised formula has kicked up a storm even before it is discussed in Parliament. Leaders from regions that had their share reduced have opposed it while those who are tipped to have a larger share have welcomed it.

“You cannot allocate revenue on the basis of poverty index and land mass. The ultimate factor that should be used to determine how much revenue would be allocated is population. The more the people the more the services they require and, therefore, the more resources they should get,” Housing Minister Soita Shitanda charged.