A 12-member committee formed to broker a deal on the contentious third basis revenue sharing formula has finally reached a consensus, Speaker Keneth Lusaka said on Thursday.
The committee is expected to table a report for debate and voting later today.
“Finally, there is white smoke. We are happy that it has come earlier than expected,” Lusaka told Nation.
Kahawa Tungu has learnt that the proposed formula takes into account eight parameters; Basic share (20 per cent), Population (18 per cent), Health (17 per cent), Poverty Level (14 per cent), Agriculture (10 per cent), Roads (eight per cent), Land (eight per cent) and Urban (five per cent).
No county loses revenue in the proposed formula with Nairobi gaining the highest amount at Ksh3.3 billion to push it’s total allocation to Ksh19 billion.
Tharaka Nithi gets the least addition of Ksh289 million.
The committee has met severally to deliberate on the best way to unlock the revenue formula stalemate.
Earlier, Elgeyo Marakwet Senator Kipchumba Murkomen who is a member of the committee co-chaired by Nairobi Senator Johnson Sakaja and his Bungoma counterpart Moses Wetangula, announced a breakthrough during today’s meeting.
“We are currently sitting as the Special Committee of the Senate on the third basis for revenue sharing. The happy ending is near, ” the former Senate Majority leader said.
We are currently sitting as the Special Committee of the Senate on the third basis for revenue sharing. The happy ending is near. pic.twitter.com/O8LXf0TBeD
— KIPCHUMBA MURKOMEN, E.G.H (@kipmurkomen) September 17, 2020
Other members of the committee include Samson Cherargei (Nandi), John Kinyua (Laikipia), Susan Kihika (Nakuru), Steward Madzayo (Kilifi), Moses Kajwang (Homa Bay), Ledama Ole Kina (Narok), Mutula Kilonzo Jr (Makueni, Anuar Loitiptip (Lamu) and Mohamed Mahamud (Mandera).
The breakthrough comes two days after President Uhuru Kenyatta promised an additional Ksh50 billion to counties in the next financial year 2021/22 in a bid to unlock the revenue formula stalemate.
Speaking on Tuesday during a meeting at State House attended by ODM leader Raila Odinga, Council of Governors chairperson Wycliffe Oparanya and the Senate leadership, President Kenyatta, however, said the additional allocation will be pegged on country’s economic performance.
The Senate had for a record 10th time this week failed to agree on how counties should share Ksh316 billion from the national government.
The passage of the formula will solve the financial crisis in the counties.
Yesterday, Oparanya said counties would shut down from today over lack of funds.
In a statement, the Kakamega county boss told all governors to issue notice suspending all non-essential services and send all county workers on a two-week leave.
Oparanya also said that from Thursday health facilities will not admit any new patients. He said they will only provide minimal outpatient services.