In this episode, we will discuss the division of revenue dilemma in the country. The episode will begin with a brief background on the division of revenue from independence to the new constitution. We will go on to explain the rational for revenue division in the new constitution and conclude with how this affects us and what we can do.
These are the percentages being discussed for the old formula (minute 7:28):
· population index = 18%,
· poverty index =14%
· land area = 8%
· basic share index=20%
· health index =17%
· agriculture = 10%
· urban services = 5%
· roads =8%
If you would like to read more about this topic, I have attached some useful links:
Shem Ochola: ASSESSMENT OF SESSIONAL PAPER NO 10, 1965 IN THE CONTEXT OF EQUITY AND DEVELOPMENT IN KENYA AND DEVELOPMENT IN KENYA (https://www.internationalbudget.org/wp-content/uploads/ibpkenya-equity-week-2016-sessional-paper-10-critique-shem-ochola-9-19.pdf)
David Ndii: Notes on the Division of Revenue Debate: Five Points to Ponder: https://www.theelephant.info/op-eds/2020/08/21/notes-on-the-division-of-revenue-debate-five-points-to-ponder/
The Daily Nation: Senators still deadlocked on revenue sharing: Thursday, July 23, 2020: https://nation.africa/kenya/news/-senators-deadlocked-revenue-sharing-1905180
The Daily Nation: We’re all winners! Senate adopts county revenue-sharing formula. Friday, September 18, 2020 https://nation.africa/kenya/news/politics/we-re-all-winners-senate-adopts-county-revenue-sharing-formula-2258118
Mwangi. S. Kimenyi: Devolution and resource sharing in Kenya https://www.brookings.edu/opinions/devolution-and-resource-sharing-in-kenya/#:~:text=Kenya%E2%80%99s%20Commission%20on%20Revenue%20Allocation%20%28CRA%29%20is%20supposed,and%20how%20much%20each%20county%20government%20will%20receive
Public Finance Management Act of 2012: https://www.treasury.go.ke/tax/acts.html?download=603:the-public-finance-management-act-2012-1-1
The Star: Why marginalised counties will wait longer for Equalisation Fund: 02 October 2020 https://www.the-star.co.ke/news/2020-10-02-why-marginalised-counties-will-wait-longer-for-equalisation-fund/
