- Category: News and Highlights
KIPPRA in collaboration with the Africa Growth Initiative (AGI) of the Brookings Institution held a forum on Revenue Sharing in Kenya at Laico Hotel, Nairobi, on 23rd October, 2013. During the event, a resource sharing calculator was launched.
The calculator is a web-based tool that computes resource allocation to county governments under different scenarios. The current revenue sharing formula uses weights that are apportioned as follows: population, 45 percent; poverty rate, 20 percent; land area, 8 percent; fiscal responsibility, 2 percent; and a basic equal share of 25 percent. The tool allows one to select alternative weights for the various parameters and see how allocations will change and vary across the counties. Users can also view the impact of greater revenues being divided among the counties—a popular idea among some policy makers and legislators in Kenya.
The tool also provides an alternative approach to resource allocation based on outcomes. This approach will be developed further as functions are unbundled and cost functions are developed. A pilot allocation framework based on malaria treatment was presented by Prof. Mwangi Kimenyi, Director, Africa Growth Initiative of the Brookings Institution.
Overall, the tool seeks to support open and transparent budgetary resource allocation, thus allowing informed policy debate and engagement between policy makers and citizens. The forum also identified challenges of revenue sharing including data unavailability and accuracy, politicization, and slow unbundling of functions. Citizens have high expectations regarding devolution which needs to be managed effectively.
For more information see http://www.brookings.edu/research/interactives/2013/kenya-resource-sharing