A showdown is looming between Governors and Senators should the Sh316.5 billion revenue sharing formula stalemate persist.
The Commission on Revenue Allocation-proposed formula that hinges revenue sharing on population density was on Tuesday rejected at the Senate for the seventh time.
Sparsely populated counties feel shortchanged with 19 counties from the North, Coast and Lower Eastern set to lose Sh42 billion.
Nakuru County is staring at a 25 % allocation increase, translating to additional Sh3.1 billion for development.
Article 217 of the Constitution stipulates that the revenue-sharing formula be reviewed every five years.
Already, a technical committee formed to broker a truce and devise a possible win-win formula has collapsed over membership composition.
Counties are now staring at a financial crisis, with operations likely to grind to a halt soon, a risky state in the times of COVID-19 pandemic.
Nakuru Governor Lee Kinyanjui says his colleagues’ patience and silence on the debate must never be mistaken for complacency.
“We shall explore every available avenue to seek economic justice to our counties,” he stated in a statement to newsrooms.
The Governor appreciated the ongoing attempts to bring consensus on the third generation revenue sharing formula.
He said the intentions to achieve equity and fairness to the losing counties is commendable.
The purported big winners in the formula, he said, have been grossly disadvantaged by the current system over the years.
“That one county can have a per capita of 3,500 and another 21,000 and call that equity, is baffling,” he wondered.
He wondered how such a skewed revenue sharing formula was allowed to pass through the previous Senate.
The formula is needed to guide the enactment of the yet to be approved County Allocation of Revenue (CAR) Bill, 2020.