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Senators Have Not Arrived At A Deal On Revenue Formula

Shadrack Olaka



It was two weeks later when members of Senate revenue committee told the country they had made a deal on the controversial revenue formula. It’s now appearing to be a fake perfume.
Sources has established that there wasn’t such deal, and in fact senators had prepared two reports after the disagreement on the way forward.
The committee mandated with the responsibility of seeking a deal on the issue, gave out two reports to the Senate leaders (Samuel Poghisio and James Orengo), asking them to seek an audience with President and opposition leader Raila Odinga on the way forward.
It came in as a surprise especially after the committee addressed a press conference immediately and declared that there was a deal.
The house debates were very hot as the senators disagreed on the formula.
Without making any progress, the senate had to set up the team to help sort out the differences.
According to some of the committee members, the team submitted two reports reason being not able to agree on the best formula given that counties that are gaining maintained that they must gain while those losing maintained that they can’t lose.
A confidential sources said that one of the reports is similar to the House Finance and Budget Committee that has been a controversy for more than two months now which supports the one-man, one-vote, one shilling arrangement as proposed by the senators from populous counties.
If the report by the Finance committee was to be adopted, the less populous counties in Coast, Northeastern, lower Eastern, parts of Rift Valley and Nyanza, would have their allocations reduced by Ksh. 17 billion.
The second report which largely borrows from a formula proposed by Mithika Linturi of which Ksh. 270 billion out of the Ksh. 316.5 billion to be shared equally among the devolved units. The remaining Ksh. 46.5 billion to be shared based on parameters such as population, landmass and health among others.
The committee came to an agreement that should either of the reports be adopted, the implementation should start after a two years period.
Senate failed to accept as satisfactory the revenue formula that would be a determinant on how counties would share the Ksh. 316.5 billion allocated under the Division of Revenue between the National Government and Counties in the financial year of 2020/2021.
Senate Majority leader said that what was handed to them is still work not completed. He stated that they will handle the matter once the Senate resumes on 8th of September from its recess.

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