Raila makes U-turn on revenue sharing formula - Beaking Kenya News

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Thursday, 6 August 2020

Raila makes U-turn on revenue sharing formula

ODM leader Raila Odinga.

ODM leader Raila Odinga has made a U-turn and no longer supports the third basis revenue sharing formula, but instead says no county should lose funds.

Raila on Wednesday said he did not have all the details on the CRA third basis formula.

"When I first wrote the statement, I had just come back from (treatment in) Dubai," he said during an interview with NTV.

He said he was not aware that the report by the Commission on Revenue Allocation (CRA) had been changed by the parliamentary budget committee.

He urged the senate to find a more convenient formula that will suit all counties equally.

"It should be a win win situation," he said.

Raila had on Sunday met with a section of Jubilee leaders to discuss the third basis revenue sharing formula.

The leaders met at Cotu chairperson Francis Atwoli’s home in Kajiado County.

The adoption of the formula proposed by the CRA prioritises population. 

On Monday, the CRA offered technical input to resolve the impasse over county cash at the Senate.

The commission's basis for recommending the third basis formula was premised on the idea that counties whose allocations were to decline by more than five per cent would be compensated by an increase in their equitable share allocation.

However, this year's allocation by Treasury has not changed, thus making it impractical to cushion losing counties, the CRA said.

Senators on Tuesday voted to adjourn debate on the Revenue Sharing Formula proposed by Sakaja. 

The formula ensures no county gets less money than the amount they received in the last financial year.

Tuesday's adjournment makes it the seventh time the debate was postponed.

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