Why Governor Kidero wants Sh3.8 billion more from the exchequer

Nairobi Governor Dr Evans Kidero has poked holes into the current revenue allocation formula saying it does not meet the city's needs.

Instead, Kidero wants an enhanced allocation of Sh3.8 billion based on the city status and population of four million from the exchequer to enable the county disseminate its services easily.

This is against the Commission on Revenue Allocation (CRA) Chair Micah Cheserem insisting that the county is rich enough to finance not only its budget but also loan to other counties.

Kidero says the current revenue allocation formula by CRA that is based on population (45 per cent), basic equal share (25), poverty status (200), land area (eight), and fiscal responsibility (two per cent) does not meet the county's city status.

Instead, it favours more marginalized counties that have less population compared to Nairobi but receive almost as much as city counties.

An example is Turkana County that has a population of 855,399 but has received Sh11.3 billion for financial year 2016/17 compared to Nairobi that has documented population of 3.1 million and was allocated Sh14 billion.

For Turkana County, CRA calculated Sh13, 218 per head with Nairobi Sh4, 468.

"In reality, Nairobi houses up to four million persons and the population bulges to five million which means we need more allocation," says Kidero.

This means Kidero wants at least Sh3.8 billion more which will increase the allocation to Sh17.8 billion from the current Sh14 billion."In the next five years, we do not expect Nairobi to still be depending on the exchequer. It should be independent," noted CRA chair Cheserem.

Kidero however asked the CRA Chair to consider city status of counties as one of the parameters in the revenue allocation formula.

"Nairobi collects a lot but it still gets Sh15 billion from the exchequer. What it needs to do is make sure every building and land owner pays the necessary levies because that is where the challenge lies," said CRA Chair Micah Cheserem during the fifth annual constitution committee forum held this week.

In the CRA's recommended formula, development factor has been pegged at one per cent. However, Kidero wants an additional parameter of city counties status added to favour Nairobi.

"Unlike other counties, Nairobi as the capital city bears further additional responsibilities, which requires the City to provide infrastructure necessary to sustain the efficient transport network connecting to rural areas, towns and other local, regional and international cities and; Commerce and Industry," said Kidero.

Kidero said the current allocation has not considered the city's proportionate contribution to national income which stands at 60 per cent of the Gross Domestic Product (GDP).

"We incur high cost of maintaining city infrastructure and utilities arising from high population density that is overstretching these facilities. One only needs to compare and contrast the living conditions in Karen and Kibra, Muthaiga and Mathare just to mention a few.