Kilifi governor Amason Kingi and his Mombasa counterpart Hassan Joho have faulted the proposed new revenue allocation formula by the Commission on revenue allocation.
The two governors claimed the new formula will derail the fruits of devolution and vowed to move to court to block it.
Kingi said coast counties will lose over Ksh5 billion if the new formula is used.
“The new formula which will come into force in the next financial year will greatly affect the coast counties. It is important that this is deliberated before taking any steps in implementing it. If this formula is used Kilifi will lose Ksh1. 5billion, Mombasa will lose Ksh1.19 while Lamu and Kwale will lose Ksh1 Billion each. This will greatly affect development in these counties,” said Kingi
Kingi expressed fears that the government is planning to kill the devolution dream.
“It started with the equalization fund which was included in the constitution. The fund was for marginalized areas but there is a discussion now to add other areas. As coast county governors we will not sit and watch people taking our rights. If we have to move to court we will do that,” said Kingi
On his part, Joho urged senators to reject the proposal when tabled in the senate.
He said counties have strategic plans and the CIDPs which they factored the current revenue allocation formula in coming up with them.
“We have master plans that go up to 2030. How do we move with reduced budgets? Anything you do there have to be progression. Senators should critically look at the real issues. Mombasa we are far off. Currently we are getting Ksh7 billion but in this formula we will get about Ksh6 billion while Nairobi gets Ksh17 billion. This is unacceptable.
Mombasa senator Mohamed Fakii said he will rally his counterparts to reject the formula.
“We have seen that the issues being considered in this formula will marginalize coast counties. We will not accept it because it will affect development negatively,” said Fakii
In the new proposal, the Commission on Revenue Allocation recommends that counties be allocated funds depending on how they utilise each coin from the public coffers to deliver services to citizens.
This means counties with a higher service delivery index will henceforth draw more resources from the exchequer, as the government tightens the noose on wastage in the counties.
Service delivery in counties will account for 69 per cent of how much each county will be allocated and not population size.
The development component takes 26 per cent while revenue and efficiency component takes five per cent.
The proposals, according to CRA, are aimed at scaling up service provision at the grassroots where devolved units have been accused of blowing up billions on wages and non-essential activities.
Counties that will pump more resources into development projects will have their revenue increased in subsequent years.