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12-member Senate Committee finally agrees on county revenue-sharing formula

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The 12-member Senate Committee that was formed to mediate on the ongoing county revenue-sharing formula impasse on Thursday, September 17 adopted the Third Generation Revenue Formula as proposed by the Commission on Revenue Allocation.

The committee, which is co-chaired by Senators Johnson Sakaja and Moses Wetangula, was tasked with coining a win-win formula for the counties in revenue allocation.

In the new formula, Nairobi gains the highest amount, Sh3.3 billion to push it’s total allocation to Sh19 billion.

Lamu’s total allocation will shoot to Sh3.1billon though Tharaka Nithi will get the least addition of Sh289 million.

No county loses revenue in this formula.

 

The committee had convened to deliberate on the proposals raised after a meeting between President Uhuru Kenyatta and the senate leadership on Tuesday, September 15.

In the meeting, Uhuru committed to allocate an additional Sh50 billion to counties in the 2021/22 Financial Year, albeit depending on the financial performance of the economy.

Uhuru had urged Senators to urgently resolve the revenue sharing stalemate so as to avoid disruption of service delivery in the counties.

White smoke finally!

The committee was optimistic about unlocking the standoff that has so far affected service delivery in the counties.

Counties are yet to receive their shareable revenue for three months now, prompting the Council of Governors to direct the 47 devolved units in the country to shut down services and send home staff for a two-week leave.

Elgeyo Marakwet Senator Kipchumba Murkomen and his Narok counterpart Ledama Ole Kina have already hinted that the committee may have found the solution for the impasse.

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