Counties with high populations to receive more in new revenue sharing formula

More than half of the 47 counties will get lower revenue shares should the proposed formula released by the Commission on Revenue Allocation (CRA) get approval from Parliament.

In the new formula proposed by the Mary Chebukati-led commission, counties with a high population will receive more, with the population accounting for 42 per cent of the revenue allocation, up from 18 per cent in the current formula.

Kitui, Kakamega, and Narok counties are among those that will suffer huge cuts in their revenue allocation.

In the third basis, formula passed in 2020, the population index was pegged at 18 per cent and has now been proposed to increase to 42 per cent.

An equal share is currently at 20 per cent and has been proposed to go up to 22 per cent, while land mass has gone up from 8 per cent to 9 per cent in the new proposals.

The new proposed revenue formula in the fourth basis has dropped other parameters, including health, agriculture, roads, and urban parameters.

While the 42 per cent population parameter favours the "one man, one shilling" model, some less populated counties benefit on the poverty index and land size to gain in the new formula.

The new formula will see a drastic reduction in revenue for 31 counties, with Kitui set to lose Ksh.343 million, while Kakamega will lose Ksh.310 million in the next allocation. Kisii and Homa Bay counties will each lose Ksh.285 million and Ksh.262 million, respectively.

Kakamega County is the biggest loser in the new formula, with Machakos, Kilifi, and Meru counties all losing more than Ksh.250 million if the Senate approves the formula.

Sixteen counties, however, will reap big under the new formula. Garissa County will get Ksh.1.9 billion more, while Marsabit County will receive an additional Ksh.1.3 billion. Isiolo and Wajir counties will each get Ksh.945 million and Ksh.607 million more, respectively.

Kajiado County is also on the favourable side of the formula, gaining Ksh.801 million, while Kericho, Samburu, and Vihiga will also gain more than Ksh.300 million each in the fourth basis allocation index.

The formula has been sent to the Senate for consideration, with the Council of Governors also set to hold a meeting to take a position on the CRA's new formula.