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{
    "id": 1570275,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1570275/?format=api",
    "text_counter": 166,
    "type": "speech",
    "speaker_name": "Sen. Osotsi",
    "speaker_title": "",
    "speaker": null,
    "content": "Mr. Speaker, Sir, I am saying that because the formula that the Committee is proposing to us has two components. It is taking Kshs387 billion, which was based on the Third Basis as a base, and then sharing the remaining Kshs12 billion and applying a basic share in this formula. I am saying that for clarity because I heard some Committee member saying we have increased the basic share. They have only increased the basic share on the Kshs12 billion, not on the entire amount. The CRA formula was increasing the basic share from 20 per cent to 22 per cent on the entire amount with a zero base but this formula is putting 35 per cent equal share on Kshs12 billion only. So, it is not favourable to us. All these factors of health, poverty, agriculture and urban are all based on population. It does not favour the small counties, yet a component of that formula has been applied in the fourth basis proposal. Even the second basis is still using population at 45 per cent. Equal share, this one was favourable, 26 per cent; land, 8 per cent; and, poverty at 18 per cent. All that is not favouring us, except the equal share. If you really want to help small counties, all the other factors are not helping them, but the factor of equal share. That is why CRA increased the equal share from 20 per cent to 22 per cent, which is why according to the CRA formula, the small counties are gaining. Mr. Speaker, Sir, even as we speak about this formula, let us look at the equal share. The equal share in this formula proposed by the committee is not favourable because it is being applied on Kshs12 billion only. How I would wish that we talk about population density. In fact, whoever proposed these factors should have considered population density. For instance, a county such as Kirinyaga or Vihiga where people live in less than a half an acre piece of land are hugely populated. That contributes to many other factors like poverty and the rest. That has not been taken into account in this formula. We need to consult more. We should not be in a hurry to pass this formula because the first basis, second and third basis formula are all unconstitutional because they do not comply to Article 203 of the Constitution. God forbid, if someone went to court, he would stop this process on the basis of Article 203 of the Constitution. We need to sit, reason together and consider that one principle that all counties should gain. Second principle, we need to uplift the small counties. If we do so, then we will make sense. When we are discussing the formula depending on how we push is the point where we need to have a huge increase in shareable revenue. During the debate for the third basis, there was a huge increase in revenue because each county needed to gain. For each county to gain, we do not need to look at the figures that have been there, Kshs387 billion or Kshs405 billion. We need to look at the figure, for instance, Kshs465 billion that we are proposing in the Division of Revenue Act (DORA). So, let us not put our minds on Kshs387 or Kshs405 billion. As we discuss, let us focus on Kshs465 billion. That is how you will help the small counties to make sense and be viable."
}