Home News Raila asks ODM senators to reject the proposed revenue formula

Raila asks ODM senators to reject the proposed revenue formula

A claim by ODM party leader close associates regarding throwing Raila under the bus has put the Building Bridges Initiative on shaky ground.

The claims put President Uhuru Kenyatta in an awkward position as he tries to maintain a good relationship with Mount Kenya leaders while trying to appease his nemesis turned political ally, Raila Odinga.

Currently, President Kenyatta remains in a quagmire. The significant number from the Mount Kenya region wants to use its name to get a larger share of the revenue.

Consequently, Raila’s allies believe the ODM side should get the lions share because of the influence and support it has at the Coast region, arid and semi-arid areas, and North Eastern.

Pegging BBI’s success and failure

ODM senators have frozen the failure or success of the Building Bridges Initiative that will see 19 counties lose billions of shillings should the revenue formula not favor them.

Sources in the senate claim Johson Sakaja has been in talks with senators allied to Uhuru and Raila regarding the stalemate.

So far, this would be Raila and Uhuru’s handshake biggest test yet since March 2018.

According to Sakaja’s compromise approach, he proposes that all the 47 counties receive what was allocated to them in the 2019/2020 budget.

The proposed formula will only get the additional funds set for the devolved units.

Allocation for urban households

To ensure the parameters have equally distributed, the Commission on Revenue Allocation (CRA) came up with ten ways for the 47 counties to get funds.

The health sector garnered 17 percent, followed closely by the population at 18 percent, and Agriculture at 10 percent.

Others include rural access 4 percent, fiscal effort two percent, urban household five percent. Land area weighs percent, basic share 20 percent, poverty index 14 percent, and prudent index two percent.

Should they focus on the Equalisation Fund, 19 counties will lose money. Despite counties like Nakuru, Kisumu, Uasin Gishu, Mombasa, Kiambu, and Nairobi contributing 43.2 percent to the GDP, they received the lowest funds.

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