By Elwin Cherop
Uasin Gishu Deputy Governor Daniel Chemno wants the formula of revenue sharing among counties to be revised to increase equal share from the current 26 percent to 50 percent.
The formula determines how the money that is allocated for counties will be shared, but not how much money in total is to be shared.
Counties receive money based on their population, level of poverty, land area, and fiscal responsibility. In the current formula, population attracts a percentage of 45, equal share, 26 percent, poverty, 18 percent, land area, 8 percent, fiscal effort, 2 percent, and development factor, 1 percent.
According to Chemno, equal share which guarantees a minimum funding for certain key administrative costs should be increased to 50 percent slashing the percentage of other parameters to 50.
Chemno who was speaking at the University of Eldoret during a workshop for the Commission on Revenue Allocation (CRA) said the move would ensure equity and help address administrative challenges such as in the payment of salaries and running operations of County headquarters.
“The current formula does not equitably factor in the cost of operations in counties. Uasin Gishu among other counties that had larger local authorities inherited the same and spends a higher amount of money on payment of salaries,” Chemno said.
“At the moment, with equitable share at 26 percent and the other parameters at a combined total of 74, means that some counties are not getting a fair share and others are benefiting more than others,” he added.
He said the principle of devolution is to bring about equity across the country and in line with that, revenue sharing among counties should not disadvantage other counties while benefiting others.
At the same time, the Deputy county boss said the development factor parameter should be eliminated as the level of development varies across counties with others developed more than others and that this is attributable to skewed governance in the past.
“Some areas were favored more than others by governments in the past in projects such as roads and hospitals. Today, those areas are more developed because of failure by the governments to ensure equity,” he noted.
He said the 1 percent factored for the development index parameter should be withdrawn and added to make part of the 50 percent to form part of equitable share.
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