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Governor Barasa opposes the fourth revenue allocation formula

Kakamega Governor Fernandes Barasa has opposed the proposed fourth formula for allocation of sharable revenue to counties.

Governor Barasa said the proposal by the Commission on Revenue Allocation (CRA) would disadvantage other counties which would end up losing the amounts they were receiving in the third revenue allocation formula.

He noted that with the proposal, Kakamega might lose close to Sh1.3 billion of revenue allocation if the proposal is passed.

Speaking at the Kakamega Golf Hotel during the issuance of grants to fish farmers on Tuesday, Governor Barasa asked the Commission to instead use the third revenue allocation formula which he claimed ensured counties got their better share of revenue.

He said there was no need to rush to change the allocation formula, noting that other countries like South Africa have used one formula for more than 30 years and they were doing well.

“I want the Senate to reject the fourth formula because it is not tenable; there is no way that you can introduce a formula that is making 21 counties lose money and then you introduce a stabilization fund of Sh12 billion to hold those counties harmless,” he noted.

The governor said that he raised his concerns about the formula at the Intergovernmental Budget and Economic Council (IBEC) chaired by the Deputy President Kithure Kindiki on Monday.

He asked Senators to reject the proposal once it is tabled in the Senate noting that if passed, then 21 counties would be disadvantaged.

 By Albert Muteshi

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