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Revenue Formula Debate shifts to the National Assembly

The debate on the basis of allocation of the share of national revenue among Counties has now shifted to the National Assembly and is expected to form part of the priority of the House agenda in the next few days.

The Clerk of the National Assembly, Mr. Michael Sialai in an advert that appeared in the Saturday dailies extended an invitation to the public to submit their views and memoranda on the Bill to his office on, or before Tuesday, 22 September. 

" In fulfillment of the requirements of the provisions of Article 118 and 217 (4) of the Constitution, the Budget and Appropriations Committee now invites interested Members of the Public to submit any representations they may have on the Third Basis for revenue allocation among County Governments as adopted by the Senate", read a section of the advert.

This follows the resolution of the Senate last week, to unanimously approve the third basis for sharing revenue among counties for the period between the Financial Year 2020/2021 to 2024/2025.

In their resolution, the Senators voted that the allocation ratio of the period running to the Financial Year 2024/2025, be equal to the shareable revenue allocated to counties in the last Financial Year.

The formula which will use the 2019 population and 2015/2016 statistics on the poverty index, is based on several factors among them,  the population index, health index, agriculture index, urban index, land area, road index and basic share.

Early in the month, in a bid to address the cash crunch in counties as a result of a protracted process on the passage of the revenue formula in the Senate, Speaker Muturi in a Communication to the House on September 8th, had urged the Senate to fast-track the passage of the Public Finance  Management (Amendment) Bill, 2019, so to allow counties to access 50% of their equitable share awaiting the determination on the formula.

While issuing his guidance, the Speaker opined that in the unlikely event that there was inordinate delay in the consideration, amendment and passage of the Public Finance Management (Amendment) Bill, 2019, by the Senate, the Budget and Appropriations Committee would urgently cause the publication and introduction of a Bill proposing amendments to the Public Finance Management Act, 2012, to cater for interim disbursements to County Governments pending the enactment of a County Allocation of Revenue Bill.

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