The Senate was deeply divided on Thursday as lawmakers clashed over the proposed revenue-sharing formula presented by the Commission on Revenue Allocation (CRA). The contentious formula, which will determine county allocations for the financial years 2025-26 to 2029-30, has sparked a fierce debate, reminiscent of the 2020 deadlock that required a presidential intervention to resolve.
During a retreat in Naivasha, senators whose counties stand to lose millions strongly opposed the proposal, questioning its rationale and fairness. Conversely, those representing counties set to gain marginally from the formula backed it, underscoring the stark divide in the chamber.
Counties Losing and Gaining
According to the new model, 31 counties will receive reduced allocations, while 16 will see an increase. Among the counties facing cuts are Baringo, Bomet, Busia, Embu, Homa Bay, Kakamega, Nairobi, Narok, Nandi, and Nakuru. Meanwhile, counties such as Wajir, Mandera, Garissa, and Marsabit are set to gain, with the four collectively receiving an additional Sh7 billion from a total increment of Sh30 billion.
Senator Okong’o Omogeni (Nyamira) criticized the model, warning that it would stifle county governments’ ability to deliver services effectively. “If you bring a formula that reduces money from some counties and denies them the ability to perform their functions, that is not a formula that should get the support of the Senate,” Omogeni stated.
Parameters and Concerns
CRA chairperson Mary Wanyonyi explained that the proposed formula assigns population the highest weight at 42%, a significant increase from the current 18%. Geographical size has been slightly increased to 9% from 8%, while the equal share allocation rose to 22% from 20%. The poverty index remains at 14%. Additionally, CRA has introduced an income distance index, weighted at 13%—a move that senators questioned.
Kitui Senator Enoch Wambua expressed skepticism over the new parameter, demanding clarity on how it was formulated. “I have serious issues with income distance as a parameter. Where has that thing come from?” Wambua asked.
Cushioning Measures and Future Prospects
In response to the concerns, Wanyonyi assured senators that the CRA has incorporated a stabilization mechanism to prevent counties from receiving less than their 2024-25 allocations. The proposal includes an enhanced allocation of Sh417.42 billion in the next fiscal year to cushion the affected counties.
Despite the assurances, senators remain sharply divided, setting the stage for a heated debate as the proposal moves closer to implementation.
