Mombasa, Lamu and Kilifi were the biggest losers in the latest allocation of revenue.
The three counties’ allocation was reduced by more than Sh2.6 billion, which means that development projects will be dealt a blow.
Cumulatively, the six coastal counties saw their allocation drop to Sh38.12 billion in the 2019/2020 financial year, from Sh39.62 billion in the year ended June 2019.
Last week, President Uhuru Kenyatta signed into law the Division of Revenue Bill which will see counties share the Sh378.1 billion allocated to them by the Senate, and backdated to July.
The County Allocation of Revenue Bill, 2019, (CARA) which was introduced and passed in the Senate sitting in Kitui on Tuesday last week, shows that Mombasa topped with the largest cut of Sh1.2 billion, followed by Lamu at Sh1 billion and Kilifi at Sh400 million.
PROJECTS TO GO ON
On the other hand, Tana River was the biggest winner, as it saw its allocation rise by Sh700 million, followed by Kwale with a Sh230 million increase and Taita Taveta, which also saw its allocation grow by Sh200 million.
From the allocation bill, Mombasa is now set to receive Sh7 billion, from Sh8.2 billion in the 2018/19 financial year, while Lamu will receive Sh2.5 billion in the 2019/20 financial year, from Sh3.5 billion last year.
However, Mombasa County Finance executive Maryam Mbaruk said they won’t downscale development spending because most of the projects are funded by other sources.
“We have alternative models of financing our major projects like housing and desalination. So we still intend to deliver on these projects. We are also stepping up local revenue collection mechanisms, having digitised some of the collection streams so as to bridge this new cut,” Ms Mabruk said.
Kilifi will receive Sh10.44 billion, from Sh10.84 billion it received last year.
SERVICE DELIVERY
County executive for finance Samuel Kombe Nzai said the reduction will affect key development projects including water, roads and education.
“The Sh400 million would have gone a long way in boosting some of these projects. For instance, we will now have to look elsewhere for funds to hire more health workers and early childhood development tutors. We will now have to enhance our revenue collection to bridge this deficit,” Mr Nzai said.
Tana River was the biggest winner, as it saw its allocation increased from Sh5.55 billion to Sh6.2 billion, while Taita-Taveta saw its allocation rise from Sh4.05 billion last year to Sh4.24 billion. Kwale will receive Sh7.78 billion from Sh7.53 billion last year.
The Commission on Revenue Allocation’s (CRA) formula links allocation to service delivery.
PARAMETERS
According to the bill, the equitable share of the Sh316.5 billion is distributed using the six parameters of population at Sh142.42 billion, equal share at Sh82.29 billion, poverty at Sh56.97 billion, land at Sh25.32 billion, fiscal responsibility at Sh6.33 billion and development at Sh3.16 billion.
Mombasa, being the only host of a level five hospital, the Coast General Hospital, will benefit from Sh4.3 billion that all hospitals in this category will receive.
In 2018, only Tana River met its revenue collection target, netting Sh56 million. Its target was Sh30 million.