Slums set for Equalization Fund billions

An aerial view of Nairobi’s Kibera slum. It is one of the areas earmarked to benefit from the Equalisation Fund under the new proposal. [Elvis Ogina, Standard]

Slums could soon benefit from the Equalisation Fund in a new proposal by the Commission on Revenue Allocation (CRA).

CRA will now identify marginalised areas within counties, including slums in major towns, as opposed to the current set-up where only 14 counties are listed as marginalised. Review in the current policy is to expand the scope of the Equalisation Fund that has accumulated a total of Sh28 billion since the onset of devolution in 2013.

“Unlike the first policy which only identified marginalised counties, the second policy will identify marginalised areas within various counties. This departure is informed by the fact that there are pockets of marginalised areas even within the highly developed counties,” said CRA Chairperson Dr Jane Kiringai.

CRA has called for public participate in identifying marginalised areas within counties that have a well-developed infrastructure such as Nairobi, Mombasa, and Kisumu.

Under the new set-up the Equalisation Fund will only provide basic services, including water, roads, health facilities and electricity to the marginalised areas to the extent necessary to bring the quality of life of residents to the level generally enjoyed by the rest of the country.

“The commission has embarked on review of the first policy and preparation of the second policy, identifying marginalised areas for purposes of sharing revenues from the Equalisation Fund from financial year 2018/19 for a further period of five years,” said Dr Kiringai.

In the first policy published in February 2013, the commission identified 14 marginalised counties - Turkana, Mandera, Wajir, Marsabit, Samburu, West Pokot, Tana River, Narok, Kwale, Garissa, Kilifi, Taita Taveta, Isiolo, Lamu.

But now Baringo and Kitui counties have been added to the list. The second policy is expected to address inadequate public participation in the identification of projects, duplication due to parallel initiatives by various stakeholders and clarity on what it means to be marginalised.

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