New revenue sharing formula repeat of history, say MPs from ASAL counties

By , K24 Digital
On Mon, 3 Aug, 2020 15:54 | 3 mins read
The Senate. PHOTO/Courtesy.
The Senate. PHOTO/Courtesy.
Among those proposed to be members of the CPAIC include senators Mithika Lithuri (Meru), Hargura Godana (Marsabit) Kimani Wamatangi (Kiambu) and Milicent Omanga. PHOTO | FILE

The Pastoralist Parliamentary Group (PPG) has asked President Uhuru Kenyatta and his handshake ally Raila Odinga to intervene to unlock the revenue sharing formula row that has created a standoff in the Senate.

With the divisions being witnessed in the Senate, the legislators said the stalemate is likely to persist throwing counties into serious financial crisis as they struggle to contain Covid-19 pandemic period.

The lawmakers appealed to President Kenyatta and the Orange Democratic Movement leader to prevail on their troops to look beyond their personal interests to make sure in today’s vote no county is “further marginalized” but make sure Kenya as a country remains intact.

Led by Mandera North MP (Rtd) Major Bashir Abdullahi, the 11 lawmakers heaped praise on the 25 senators who voted to reject what they term as contentious, skewed, and colonial formula in revenue sharing.

“We also want to appeal to those who voted yes to that formula to look beyond political inclinations and personal gains and consider the impact on over 19 counties that will lose funds meant for critical needs such as health care, water and access to other basic needs that the rest of Kenyans have been enjoying for many years and continue enjoying,” said MP Abdullahi at the press conference in Nairobi on Monday.

The MPs said the new revenue sharing formula targets marginalized areas, and if passed will disenfranchise a section of the country.

They were MPs Abdikarim Osman (Fafi), Ruweida Mohammed (Lamu Women rep), Mohammed Hire (Lagdera), Rehema Jaldesa (Isiolo Women rep), and Moyale’s Qalicha Gufu.

Others were Ahmed Bashane (Tarbaj), Sofia Sheikh (Marsabit Women rep), Ahmed Abdisalan (Wajir North) and Ali Wario (Garsen).

“We want to declare our maximum and unparalleled support for the patriotic legislators even as we prepare for the next sitting tomorrow (Tuesday),” they said in a press statement read by Abdullahi, who is also the vice-chairman of the caucus.

During last week's vote, a faction coalescing around proposals by Nairobi Senator Johnson Sakaja and his Makueni counterpart Mutula Kilonzo Jr, all clad in ties branded in national colors, in a solidarity show that rallied some 23 senators from the losing and gaining counties to shoot down the proposal by Muranga’s Irungu Kang’ata.

Kang'ata proposed to have the third basis formula for allocating funds to counties be deferred for two years.

The new formula favours counties with large populations to the detriment of counties with a huge land mass and smaller population.

This came after tabling of the report of the Finance and Budget Committee that considered the formula as developed by the Commission on Revenue Allocation (CRA) had recommended that the formula be applied from 2021/22 financial year.

Under the proposed formula, 29 counties are gaining while 18 are losing out in a radical shift from the first and second revenue sharing basis.

Going by the CRA parameters, it means that counties with high poverty levels and small populations will lose out on the equitable horizontal share compared to those with high populations.

According to CRA, the new formula is meant to enhance service delivery, promote balanced development, and incentivize counties to optimize capacity to raise revenue as well as incentivize prudent use of public resources.

But Mandera North MP said the new formula as initiated by the CRA and subsequent amendments on its original proposal is simply a return to the 1965 Sessional Paper No.10 which is known to have institutionalized the marginalization of arid and semi-arid regions (ASAL).

“We are here today demanding for equity, fairness and acceptable revenue sharing formula that put this country together which is also not based on factors that will disadvantage deliberately our people,” Abdullahi said.

On her part, Isiolo Women representative Jaldesa Rehema contended that revenue sharing and allocation should be pegged on development needs and priorities.

While fingering the Senate Committee on Finance and Budget that is chaired by Kirinyaga Senator Charles Kibiru, Rehema said those crafting this new amended formula ought not to forget the level of underdevelopment in ASAL and coastal regions caused by such policies crafted by their forefathers.