Senators finally reach consensus on revenue sharing formula

Written By: Beth Nyaga/Edward Kabasa

Senators finally reach consensus on revenue sharing formula

Senators have finally reached consensus on the third basis for revenue allocation among county governments.

KBC Radio_KICD Timetable

The lawmakers have agreed that no county shall receive less than what they were allocated in the 2019/20 financial.

All the 41 Senators (delegations) present in the House on Thursday afternoon voted to approve the formula after months of a standoff.

The team co-chaired by Senators Johnson Sakaja (Nairobi) and Moses Wetangula (Bungoma) announced that it has come up with a comprised formula.

Get breaking news on your Mobile as-it-happens. SMS ‘NEWS’ to 20153

However, the additional allocation will take effect in the 2022/2023 financial year.

After weeks of grandstanding, Senators have finally agreed to chart a way forward on the contentious third basis for revenue allocation among the counties.

The lawmakers factoring in the Ksh 53 billion promised to counties by the President in the next financial year.

In the new arrangement, Nairobi County whose allocation currently stands at Ksh 15.5 billion shall receive Ksh 19.2 billion in the next financial year.

Other big winners in the agreed formula include Nakuru, Kiambu and Turkana which shall receive an additional Ksh 2 billion each.

Wajir County which was one of the devolved units staring at possible budgetary cuts in the Linturi formula will now receive an additional Ksh 929 million in the next financial year.

The breakthrough in the Senate will perhaps bring some much-needed comfort to counties which have been reeling from a cash crunch occasioned by the revenue impasse. 

KBC-You-tube-728x90-New-2

Tell Us What You Think