The proposed formula by the Commission on Revenue Allocation (CRA) for sharing of revenue among the 47 devolved units relies less on poverty levels in the sharing of Billions from the National Treasury.
The rationale here is that The national government will only raise share of allocations to the counties that increase their own internal revenue collection.
Currently counties share revenue based on five parameters, namely population (45 per cent), equal share (25 per cent), poverty (20 percent), land area (eight per cent) and fiscal responsibility (two per cent).
The proposed formula will see the weight of poverty in determining the revenue share become less significant as a determining factor.
Nairobi, Kiambu, Nakuru and Machakos for examples are counties that improved revenue collection due to automation of their revenue collection systems. Based on that these are the counties that this formula will reward big.
CRA also introduced a new parameter labelled the development factor with a weight of one per cent.
The Formula for Revenue Allocation to Counties debate has been turned into a political contest with the some camps advancing partisan propositions that only worsen the division. This is preposterous as it polarises the country and fails to resolve anything.
The objective of devolution is to achieve two things:
Empower communities to make decisions on matters that affect them.Achieve EQUITY in resource allocation.This is to cure historical injustices & disparities in development due to skewed resource distribution.
Empower communities to make decisions on matters that affect them.Achieve EQUITY in resource allocation.This is to cure historical injustices & disparities in development due to skewed resource distribution.
Those this #1Man1Vote1Shilling debate must be approached with sobriety. Not emotions nor Region grandstanding politics.
