What you need to know:
- On Thursday, Senators unanimously passed and voted to approve the formula after a standoff that has lasted three months.
- The breakthrough came a day after President Kenyatta pledged an additional Sh50 billion allocation to counties to supplement the Sh316 billion.
- In July, the DP urged Senators to deliver a win-win formula on sharing the revenue and ensure no counties are disadvantaged.
Deputy President William Ruto has lauded Senators for unlocking the contentious counties revenue-sharing formula stalemate, which threatened to cripple operations in counties.
The DP, in a message on his Twitter handle, on Thursday evening congratulated the Senators for agreeing on a win-win formula on revenue sharing.
"Congratulations the Senate of Kenya for rising to the occasion and delivering a win-win formula on revenue sharing. Reason, not intimidation, consultation not confrontation, persuasion not blackmail, has sailed through. Together all our counties are winners," said DP Ruto.
On Thursday, Senators unanimously passed and voted to approve the formula after a standoff that has lasted three months.
Counties have remained cash-strapped for months after the Senate failed to agree on what formula should be used by the national government to disburse Sh316 billion to counties.
In July this year, the DP urged Senators to deliver a win-win formula on sharing the revenue and ensure no counties are disadvantaged.
Dr Ruto said the debate on the third basis formula for sharing revenue among counties was ''unnecessarily divisive.''
Before Senators passed the win-win formula, a 12-member special Senate Committee appointed to resolve the long-standing third basis revenue sharing formula stalemate had on Thursday morning reached a consensus.
The committee, led by Bungoma Senator Moses Wetang'ula and his Nairobi counterpart Johnson Sakaja, agreed to adopt the report, ending months of confusion.
The breakthrough came a day after President Uhuru Kenyatta pledged an additional Sh50 billion allocation to counties to supplement the Sh316 billion.
Meanwhile, Amani National Congress (ANC) leader Musalia Mudavadi, while lauding Senators for resolving the stand-off, has called on President Kenyatta to keep his promise of increasing and releasing the additional funds.
"Now that the Senate has reached consensus on the revenue sharing formula, the executive must, on its part, keep its promise of increasing and releasing the additional funds," said the ANC leader.
He added: "The now ended stalemate has left a sour taste in the mouths of all Kenyans. Honest and committed implementation of the Senate resolution is paramount in reassuring the country that devolution is not a temporary inclusion in our Constitution."
In the formula approved on Thursday, no county will lose revenue.
Nairobi, Nakuru, Kiambu and Turkana will get the lion’s share of the billions set to be allocated to the counties.
Nairobi, for instance, will get an additional Sh3.3 billion from the Exchequer, to push its total allocation to Sh19.2 billion from the current Sh15.9 billion.
Nakuru’s allocation will shoot to Sh13 billion from the current Sh10.4 billion, Kiambu will get Sh11.7 billion after an additional Sh2.2 billion, while Turkana’s will be Sh12.6 billion from Sh10.5 billion.
Others, including Kakamega, will get an additional Sh1.9 billion, Bungoma (Sh1.7 billion), Uasin Gishu (Sh1.7 billion), Nandi (Sh1.6 billion), Kitui (Sh1.5 billion) and Kajiado (1.5 billion).
Senators had on numerous sittings failed to resolve the impasse despite numerous consultations and several weeks of negotiations, in what exposed deep political divisions in the country.
The stalemate stalled the passage of the County Allocation of Revenue Bill, which must be passed and signed into law by the President before counties can get money.
The standoff degenerated and caused divisions in political parties with members taking different stands.
Early this week, the Council of Governors, through its chairman Wycliffe Oparanya, announced a shutdown of operations in counties as the revenue stalemate persisted.
The CoG chairman announced a shutdown of operations and said counties had sent workers on leave “until an amicable solution on the issue is reached.”
The CoG had also threatened to initiate a petition to dissolve the Senate over the persistent crisis.