Revise revenue sharing formula based on population size – urges Deputy Governor – Kenya News Agency

Kiambu Deputy Governor Rosemary Kirika, has called on the government to reconsider the existing revenue-sharing formulas for counties and constituencies.

She noted that some leaders were advocating for the implementation of the one-man, one-vote, one-shilling formula as they believed that certain issues were not being sufficiently addressed due to perceived funding inequalities.

Speaking in Kiambu during the groundbreaking ceremony of Kiambu Municipal offices headquarters, the deputy governor noted that there were significant issues with the formula currently being used that required immediate attention.

“If you hear people speaking out against a formula being implemented by the government, it is a clear indication that something is amiss. Our citizens are knowledgeable and attentive to current affairs.” She said.

She urged the government to utilize economic experts to reassess the current formula, taking into consideration the increased population of the country and the disparity in residents across different regions.

Kirika expressed her concerns as Kenyans flooded the streets of Kiambu to oppose the new taxes outlined in the Finance Bill of 2024, expressing concern over the proposals in the Bill and 2024-25 budget that will increase the tax burden on citizens and raise the cost of living.

The Deputy Governor urged the government, including the Commission for Revenue Allocation (CRA) and the National Treasury, to host public forums to gather feedback on the existing formula for revenue collection and discuss its pros and cons.

“We urge the CRA and the Treasury to disclose the formula they are using as transparency will help clarify any changes that have occurred and identify areas that may need adjustment in order to address public concerns and put these criticisms to rest.” She stated.

  Kirika suggested that during the exercise, the CRA and relevant officials collaborate with a team of experts.

Phillip Mwaniki, an economist who was present at the event, pointed out that while the formula used by the government was effective, it needed to be regularly updated to account for the country’s population growth.

“Given the rapid population growth in the country, certain counties are more densely populated than others. It is crucial that we reevaluate the formula being used.” He said in agreement with the deputy governor.

Supporters of the one-man, one-vote, one-shilling principle argue that financial resources should be distributed to regions based on their population size in order to align funding with the level of need.