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{
    "id": 644425,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/644425/?format=api",
    "text_counter": 241,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "formula recommended by CRA which allocates the revenue among the county governments. It looks at six parameters and gives weight to each of them as a basis of sharing revenue among the county governments. The parameters are:- 1. Population. It is recommended that it is given a weight of 45 per cent. 2. Basic equal share at 26 per cent. 3. Poverty at 18 per cent 4. Land area at 8 per cent. 5. Fiscal responsibility at 2 per cent 6. Development factor at 1 per cent. This makes a total of 100 per cent. So, that is the formula that is recommended by the Committee to the House. It is based on the recommendation of the CRA Report which was tabled in the House. In cognizant of the role of the Senate, I urge each of the Members of this House that we have an obligation to look at this formula in the large interest of the country but not the interests of the counties that we represent. Talking to all the other stakeholders, it is clear that this recommendation by the Commission on Revenue Allocation (CRA) incorporates issues which have been raised by Senators when we had a retreat in Mombasa and also in our meeting in Nairobi. As a committee, we have also done some benchmarking visits to some other countries to look at the best practices and experiences on inter-governmental transfers in order to enrich the formula. Members of the public raised quite a number of issues. I think all the views had been taken on board when the CRA was developing this formula. Some of the key issues that I want to talk about are the parameters. The first parameter is population. Population is a good measure of expenditure needs of a county. We have said before that it is simple, objective and transparent and it ensures predictability. It also provides for stable and predictable allocations of revenues to counties. The other thing is that the population parameter guarantees this predictability but also ensures equal per capita transfers to counties. This is because services that are provided by county governments are provided on per capita basis. There is a county that has a population of one million and there is another one with a population of 100,000 people. The needs of these two counties in terms of providing services such as drugs or medicines on per capita basis cannot be the same. Therefore, the cost of provision of those services would be higher for counties with higher population. So, the use of population will ensure that counties deliver functions allocated to them and it is a very good measure of fairness. The second parameter is basic equal share which provides that there is a minimum amount that is given to every county to ensure that certain functions are funded. These include administrative functions of setting up and running the county executive committees and their offices, paying Members of County Assemblies (MCAs) and all the other administrative establishments that have been set up in the county governments. So, the basic equal share will provide adequate funding to each of the counties. 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"
}