Uhuru, Ruto differ on revenue sharing formula

President Uhuru Kenyatta and his deputy William Ruto on Friday differed on the ongoing debate on the contentious revenue-sharing formula, which has failed to go through the Senate nine times.

The President, who sought to distance himself from the tug-of-war over the formula, which has since taken the dimension of a political contest between him and Dr Ruto, said it was designed by the Commission of Revenue Allocation (CRA) and his duty was to find solutions and not engage in bickering and power struggles aimed at precipitating ethnic and regional politics.

On the other hand, Dr Ruto, while addressing leaders from Bungoma and Trans-Nzoia counties at his Sugoi home, said even though populous counties have to get additional resources, the marginalised ones should not register big losses.

And with that, while the two appeared to urge consensus on the impasse, they differed on the mechanics and substance of the national debate. They both asked Senators to quickly find a solution, with the President saying the process of resolving the stalemate should be steered by the principles of justice and truth.

Land title deeds

Mr Kenyatta was speaking at Kenyatta International Convention Centre in Nairobi, where he oversaw the issuance of 38,000 land title deeds to residents of Embakasi Ranching, Tassia, Korogocho and Mbagathi River Bank estates in the city, while Mr Ruto was addressing leaders from Bungoma and Trans-Nzoia counties at his Sugoi home.

“The Senate has the requisite leadership and wisdom to come up with a formula that takes into account all the parameters and ensures that populous counties have additional resources because we have all agreed that it is a constitutional requirement that we review the formula at this point in time,” said Mr Ruto.

He added: “But as we review the formula, we must ensure that populous counties like Uasin-Gishu, Nandi, Kiambu, Siaya, Kisumu, Nyeri, Kakamega and Bungoma get additional resources. Small counties like Vihiga, Tharaka-Nithi, Isiolo and Tana River should not suffer. The losses and gains should be moderated. It is possible for us to have a formula that gives Kenya a win-win scenario.” In Nairobi, President Kenyatta, in what seemed to have been aimed at the DP’s allies, said he has resolved to avoid bickering and watch the unfolding events through the media.

“This is not Uhuru’s money. This formula was crafted by the Commission of Revenue Allocation and went to the Senate, indicating that the revenue should be shared justifiably such that everyone gets their fair share.

“Why, then, should a resident of Korogocho or Embakasi be denied their right on the pretext that they live in Nairobi, which they consider a rich county, without the right to receive a specific rightful share of the revenue? Yet these individuals still make do with flying toilets. Truth and impartiality will eventually come out,” said the President.

He called on leaders to find workable solutions to their electorate’s problems, ensure justice prevails for the people and guarantee that everyone gets their privileges.

The President condemned infighting in the ruling party, saying conflicts have no place in the leadership of the country. Leadership, he added, does not belong to anyone in particular and is only God-given.

“Only God decides on a leader when his right time comes. We do not need to be competing and conflicting time and again. But then again it is democracy and this is the route that we chose to chart,” President Kenyatta said.

Dividing political class

“However I have no time to fight with other leaders. Those making all the noise can go on. But my actions and work will eventually speak for themselves. You will appreciate my effort.”

The stalemate surrounding the revenue formula has become a hot potato dividing the political class, with allies of the DP in the Senate led by Kipchumba Murkomen (Elgeyo-Marakwet) opposing the Handshake-backed proposals.

Yesterday the 12-member Senate committee, which is co-chaired by Senators Moses Wetang’ula and Johnson Sakaja, hosted National Treasury Cabinet Secretary Ukur Yatani and the CRA to try and understand  revenue projections for the next five years and the reasoning behind the original formula.

The Saturday Nation learnt that a deal is still far off and the special sitting that had been tentatively planned for Tuesday may not happen.

“We shall gazette a sitting when the committee is ready” was all Speaker Kenneth Lusaka said yesterday, adding that he was satisfied with the deliberations in the committee.

The Saturday Nation learnt that the meeting with the CS revolved around proposals by Senators James Orengo (Siaya), Petronila Were (Nominated) and Kimani Wamatangi (Kiambu) that the national government should insulate the so-called losing counties through additional funds. The Senators wanted to understand whether it is possible to allocate counties Sh348 billion in the mid-term, taking into account the beating the economy has been subjected to by the Covid-19 pandemic.

Oiginal CRA formula

Ms Were wants the original CRA formula adopted, but only after the equitable shareable revenue is raised to Sh348 billion. While this sounds good to devolutionists, the economic realities are different.

In his proposal, Mr Wamatangi wants the 2020/21 allocation per county retained as was the case in 2019/20, and further proposes that the National Treasury provide additional funds equal to the losses arising from the application of the formula for the FY 2021/22 to cushion the losing counties.

Mr Orengo wants the CRA to review its original proposal, taking into account the recommendations of the committee on Finance and concerns raised by Senators and submit the revised recommendations to the Senate within three months.

He wants the CRA to take into account additional factors, including pastoralism, the livestock sector, the blue economy, extractive industries and wildlife and conservation in determining principles and parameters of equitable share.

By Brian Okinda, Ibrahim Oruko and Onyango K’Onyango