Ndii who is an economist by profession paddled into the revenue impasse at the Senate said the controversial formula contravenes the principle of equity and fair sharing of resources as required by the Kenyan laws.
“The overreaching principle to be used as a basis for revenue allocation is spelled out in the Principles of Public Finance (Article 201) specifically 201 (b) – ‘the public finance system shall promote an equitable society’ – and 201 (b)(iii) – ‘expenditure shall promote the equitable development of the country’,” he quoted.
Delving further, Ndii explained that equitable society and equitable development are defined by the outcomes such income per person, life expectancy, school enrollment and education outcomes, access to health care, among other key pointers.
The new revenue formula that hit a hit a deadlock at the senate will see 18 counties lose Sh17 billion if passed. Senators from north eastern and coastal counties rejected it because they stand to lose.
“Models that inform the final basis for revenue allocation should be based on the targets set by the country and cost of offering that service” Ndii said as he went on to explain why senators should reject it.
“If we had agreed on the destination then it is doubtful that we can agree on the route. This crisis, then, provides an opportunity for the Senate to abandon the formula straight jacket,” he said.
The economist said the country has enough data on costs of providing services in different parts.
Ndii’s stand goes against that of former Nasa principal Raila Odinga who backed the president last week. The economist argues that the politics of ‘one man, one vote, one shilling’ that has been shrouded around the bill is utter nonsense.
Most leaders from Central Kenya back the bill that Ndii calls as a complete reversal of constitutional principle.
“This approach will clearly favour the development of areas having abundant natural resources, good land and rainfall and power facilities, and people receptive to and active in development,” Ndii said.
He said that it will be unfair for Marsabit, for instance, will get nothing for their wind resources, but when it comes to sharing revenue, the contribution of the wind resources to the revenue accounts for nothing.
He accused the crafters of the proposal of cleverly champion the principle of supremacy in resource allocation and development which is nothing but colonialism.