Uhuru pledges Sh50bn for counties in efforts to end revenue stalemate

President Uhuru Kenyatta has promised to allocate counties Sh50 billion in the 2021/22 financial year, based on economic performance, as part of efforts to strengthen devolution. 

The President made the announcement on Tuesday, when he convened a leaders' meeting at the State House in Nairobi, to discuss the county revenue sharing stalemate at the Senate.

He urged senators to urgently resolve the row to avoid disruption of service delivery in counties. 

President Kenyatta convened the meeting that Orange Democratic Movement (ODM) leader Raila Odinga and Council of Governors Chairman Wycliffe Oparanya (Kakamega) also attended.

The meeting was part of the Executive’s efforts to end the protracted stalemate that has seen the House fail to adopt the formula for the last three months.

The Senate was represented by Samuel Poghisio (Majority Leader), Irungu Kang'ata (Majority Chief Whip), James Orengo (Minority Leader) and Fatuma Dullo (Deputy Majority Leader) 

Also present were senators Beatrice Kwamboka (Nominated) and Johnes Mwashushe Mwaruma (Taita Taveta). 

Debate resumes

The State House meeting came ahead of the debate on the third basis of sharing revenue among counties, that resumes on Tuesday afternoon.

The debate was suspe on August 17 for the lawmakers to explore consensus.

A 12-member informal committee was formed to try to bridge the gap between the two divides that have emerged in the House over the issue.

However, the committee failed in its mission and instead gave two conflicting recommendations, each favouring either of the antagonistic camps.

Last week, the Council of Governors announced it will shut down counties if the Senate does not quickly end the stalemate, which has seen most counties fall back in their budgetary plans and delay payment of salaries.

President Kenyatta and ODM leader Raila Odinga have voiced support for the one-man-one-shilling formula and sources say the meeting was held to ensure this formula is adopted.

Proposed amendnment

Already, the committee’s motion on the formula is on the floor of the House.

By the time the House adjourned on August 17 to explore the possibility of a consensus, the senators were debating an amendment brought by Nominated senator Petronila Were, which wants the House to adopt the initial formula developed by the Commission on Revenue Allocation (CRA).

But Ms Were suggests that the formula should only be adopted if the equitable share allocation to counties is pegged at Sh348 billion.

Her formula seeks to amend one proposed by Meru Senator Mithika Linturi, which proposes that the third basis formula should only apply above Sh270 billion.

Last week, Mr Odinga drummed up support for the formula and accused some of the senators of corrupt tendencies in the debate.

He claimed Kakamega Senator Cleophas Malala faked his recent arrest to mask his underdeals with a saboteur he did not name.