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"content": "billion. With that allocation, only slightly under Kshs2 billion constitutes the wage bill. Therefore, Wajir County in that allocation already has some Kshs7 billion to commit towards development. If you take a county like Mombasa, Kisumu and Nairobi, the allocation almost constitutes the entire wage bill. One would expect that if you give an allocation that can only cater for the wage bill, then it is inherent that there is no money for development. For further determination of this formula, we need to belabor ourselves on how best we can spread what the Constitution says is equity which is different from equality. Equity means that we shall be able to take a sizeable responsibility of those counties so that counties are able to perform their functions. Mr. Temporary Speaker, Sir, here, we have a personal emolument factor which has been put at 2 per cent, spread across counties. As Sen. (Dr.) Khalwale had observed when we were consulting in low tones here is that the only way that this can make sense is to look at those counties where they are burdened by wage bills and on account of those burdens, those counties could have that cushion so that we can then say that these are conditional grants for certain counties so that they can be able to perform their responsibilities more effectively. On my third year in the Senate, I am hesitant to support this formula for revenue allocation because until that day we shall get that formula right, I do not think I will be discharging my responsibilities faithfully to the people of Mombasa, just because it looks good and just because there is general consensus. I know for a fact that it sets my county up for failure, ridicule and to a position that it has far less to commit to development and commit the entire budget to the wage bill. It is also important for me to exercise the honesty not to allow this erroneous misrepresentation that a certain county X which has in excess of Kshs7 billion is doing more development than a certain county Y, which literally has no monies committed to development. Mr. Temporary Speaker, Sir, I would also hasten to add that certain counties which receive low allocations must also be creative. It is not enough to say that we are not getting the kind of money that we want from the CRA or the Treasury. We need to see how best we can be able to put mechanisms in place that will allow counties to generate revenue in a manner as to bridge that gap so that these counties are able to discharge certain responsibilities in excess of just payment of wage bills. If the money increases, it is true that Mombasa County will have a little more money to spend on development, but that money increases evenly across the spectrum and, therefore, it does not solve the problem where the inequalities are witnessed. Devolution was not brought here to enhance equality but equity. Therefore, I believe that for equity to be realized and for counties to meet the expectations of the public, then it is important that we are flexible in our formula. This blanket sharing of revenue might miss the point in terms of revenue allocation. Therefore, I think we need to do more and factor in wage bills. This also means that the Transition Authority (TA) and other Government agencies must help counties to evaluate their needs so that they do staff rationalization. You understand that it is a fairly emotive issue to terminate people’s employment on account of rationalization. I think there is need for us as we progress to ensure that these revenue formulas are equitable and that a lot more factors are put in the parameters. More of them should The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}