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Revenue formula team begins talks on sharing money

By Roselyne Obala and Moses Nyamori | August 20th 2020 at 00:00:00 GMT +0300

The Senate mediation committee yesterday held its first sitting in a bid to unlock the impasse on a revenue-sharing formula.

The 12-member committee, co-chaired by Johnson Sakaja (Nairobi) and Moses Wetang'ula (Bungoma), kicked off proceedings by considering the amendments before the House.

The Standard established that the committee, which held two sittings yesterday, received a presentation by the Parliamentary Budget Office on the proposal by the Commission on Revenue Allocation (CRA) and the Finance Committee's amendment.

The proposals on the table included one by Minority Leader James Orengo, and nominated senators Petronilla Were and Kimani Wamatangi. 

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“They have already presented the three to the committee. Orengo’s amendment was more futuristic. Laying the parameters should be deeper,” said a source who spoke to The Standard.

"We will deliberate on all the proposals before we are guided on the way forward."

Orengo's amendment seeks to compel CRA to review the original proposal to include factors like pastoralism, blue economy, the extractives industry, wildlife and conservation.

The Siaya senator wants CRA to submit a revised formula within three months for debate by the Senate.

The amendments by senators Isaac Mwaura (Nominated), Sakaja, Ledama ole Kina (Narok) and Mithika Linturi (Meru) will be considered today, said another source.

Way forward

The committee has three days to consider the proposals and thereafter agree on a way forward.

Were’s formula has the backing of President Uhuru Kenyatta, ODM leader Raila Odinga, ANC leader Musalia Mudavadi and governors, while Linturi has the support of Deputy President William Ruto.

The nominated senator proposes to retain the second-generation formula and adopt the CRA formula in the 2022-23 financial year or when the State increases the counties' allocation to Sh348 million, up from the current Sh316.5 billion.

Sakaja’s amendment seeks to retain the second-generation formula and cap the revenue-share baseline at Sh316.5 billion.


Revenue Sharing Stalemate Revenue Sharing Row Senate
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