Wamatangi wants revenue allocation reviewed

What you need to know:

  • The formula, he says, should largely operate like how counties with rich resources get a share of the proceeds.
  • He gave the example of Turkana County which will be benefiting from a certain percentage of the revenue fetched by oil.
  • He said Nairobi, Kiambu, Mombasa, Nakuru, most counties in Mount Kenya contribute a lot owing to their economic activities.

A senator has proposed that counties which are major revenue contributors, be rewarded with at least 10 per cent of the revenue contributed by their respective citizens to boost annual allocations and also motivate the dwellers to generate more revenue.

Kiambu Senator Kimani Wamatangi said that the parameters currently being used to distribute resource disadvantage counties which contribute huge revenues, saying they get the lowest allocation that is hardly enough to meet their needs.

MARGINALISED

The senator warned that if the issue is not addressed, developed counties will be subsequently marginalised. 

And as a remedy, Senator Wamatangi is proposing that a new parameter dubbed “own contribution to the revenue kitty” be introduced in the revenue allocation formula to ensure counties contributing greatly to the national exchequer keep 10 per cent of their total contribution.

The formula, he said, should largely operate like how counties with rich resources get a share of the proceeds collected from resource in their regions.

Mr Wamatangi gave an example of Turkana County which will be benefiting from a certain percentage of the revenue fetched by oil and Narok County which he said reaps from Masai Mara National Park.

BUSINESSES

“Turkana Governor Josphat Nanok pushed to have local residents get a share of the proceeds of oil while Narok gets all the revenue collected in Masai Mara. In Kiambu for example, our oil is the real estate sector, industries, farming and business and so the region should benefit by getting part of the collected revenue as a reward,” Mr Wamatangi said, adding that he will push the agenda to the Commission on Revenue Allocation.

The Kiambu lawmaker said Nairobi, Kiambu, Mombasa, Nakuru, most counties in Mount Kenya and others with big towns contribute a lot owing to their economic activities, but during revenue allocation, they are never given a motivation to help them generate more revenue.

SERVICES

According to the senator, after collecting the revenue, before  it is submitted to the national government for distribution, counties which are large contributors should keep ten percent of it so that it can go towards benefiting them.

The legislator also said that counties where urbanisation, which is occasioned by migration get a special allocation to enable them fund and sustain services offered to people from other regions with a view to ensuring equity.

PARAMETERS

Mr Wamatangi  said urbarnised counties, which hosts many “outsiders” end up cutting their development kitty to factor in the “outsiders”, since one of the main parameters used to allocate fund is according to the population in a particular county.

Kiambu, he said, was one of the most affected counties, since most of its main towns like Thika, Ruiru, Kiambu, Limuru, Ruaka and Kikuyu play host to many “outsiders.” who are either just tenants or work in the counties.