Senate approves third basis revenue sharing formula


Senate approves third basis revenue sharing formula
File image of the Senate in session. PHOTO| COURTESY

The Senate has passed the proposed third basis revenue sharing formula after a record 10 failed attempts to reach a consensus.

The senate unanimously voted to adopt the formula a few hours after the special Senate Committee announced an end to the impasse.

Earlier in the day, the Wetangula-chaired committee had reached a consensus on the formula and briefed the rest of the house before the official sitting.

The proposed formula takes into account eight parameters; population at 18%, health 17% Agriculture 10%, Urban 5%, Roads 8%, Poverty level 14%, Basic share 20% and land at 8%.

In the new formula, Nairobi gains the highest amount at Ksh3.3 billion to push its total allocation to Ksh.19bn.

Lamu’s total allocation will shoot to Ksh.3.1billon though Tharaka Nithi will get the least addition of Ksh.289 million.

No county loses revenue in this formula.

The newest developments will come as reprieve for cash-strapped counties that were facing an imminent shutdown.

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