Coastal counties set to lose billions if CRA allocation formula is adopted

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Mapembeni area in Mombasa County. Coast Counties are set to lose billions if new CRA formula is applied./COURTESY

Anxiety is gripping senate on anticipated proposal by Commission of Revenue Allocation, on adoption by the house of a new formula on allocation of funds to the counties.

In the new proposal by the CRA, formula assigns health 15 per cent, basic share 14 per cent, agriculture 10, while population has been weighted 18 from 45 per cent in the current formula.

Landmass has been assigned five per cent and urban area given same weight too.

If applied coastal counties will lose billions of shillings.

Some of the counties which will be worst hit in the Coast region include Kwale which will lose sh1.2 billion and Kilifi sh1.1 billion.

Mombasa will lose sh.682 million and Tana River sh.499 million.

The worst hit counties include Mandera which will lose sh.2.09 billion, Wajir will forgo sh1.4 billion.

The beneficiary counties include Kiambu which will gain sh.1.3 billion, Nairobi sh.1.2 billion, Uasin Gishu sh.923 million, Nandi sh.788 million, Kajiado sh.765 million, Nakuru sh.744 million and Laikipia sh.660 million.

On Tuesday senate committee on finance failed to table the amended version of the report to the house as proposed by CRA.

The move was occasioned by senate speaker ruling that the matter be handled by a kamukunji before further discussion.

The heated debate and infights among senators was anticipated in the house if the report was to be tabled as the senators who represent counties which will be adversely affected vowed to oppose the new formula in totality.

“I am therefore giving directions that we have a kamukunji, on Monday, so that we are taken through the report,” Lusaka said.

The current formula focuses on the land mass, population and poverty level.

Article 217 of the Constitution stipulates that the revenue-sharing formula be reviewed every five years.

Makueni senator Mutula Kilonzo reportedly said the loss of money of some counties will impact negatively on the said counties pointing that the finance committee ought to recommend to the House on the retention of the current formula as they seek input on how to improve the proposed one.

“Our work is to minimize such discrepancies or find a way to cushion counties,” Mutula said.

However, earlier this year Nairobi Senator Johnson Sakaja protested the continued use of the obsolete formula, saying that it was disadvantageous to some counties.

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