Senate Speaker, Kenneth Lusaka, has spoken to the media for the first time regarding the County Revenue Sharing formula.
In an interview with Citizen TV, Lusaka said that the reason for the protracted stalemate was due to the fact that the new budget proposed by the CRA would see some counties lose money.
Both houses disagree
“There was a disagreement between the National Assembly and the Senate. The National Assembly had recommended a figure less than what was given in the previous year, Ksh 310 B. It went into mediation, where they settled on KSh 316 B. However, the Senate was pushing for Ksh 335 B so that no county would lose revenue. Up to 18 counties would lose money (in the Ksh 316 budget). Madera would have lost up to 1 B shillings,” Kenneth Lusaka said.
The Senate, Kenneth Lusaka said, was pushing for a situation where counties wouldn’t lose as much money. If possible, they needed to gain.
All counties gain
Consequently, he said, the new agreement then, would see counties receive the funds that they got in the 2019-20 budget. However, the new county budgets would be implemented in the coming fiscal year.
“Counties will receive what they got in the budget year 2019/20 and the new formula will take effect in the next financial year. I do not think the National Treasury will be unable to get Ksh 53.5 Billion from anywhere.” Lusaka said.
The Senate reached an agreement on the Revenue Sharing bill unanimously last week, with all senators present voting yes for the new revenue formula.
That brought to an end a three-month stalemate which saw counties go without funds since July, after the reading of the 2020/21 fiscal year budget. The protracted period saw counties get to a point where they could not function.
Council of Governors had called for the shutting down of all county operations on the 17th if the senate failed to agree. The Senate reached a consensus on that same day.