This archive report was first published on 5 August 2020.
Kenya is on the cusp of a significant economic shift, thanks to the introduction of a new County Revenue Allocation formula. This innovative approach is designed to ensure that counties with the greatest need receive a fair share of resources, leading to exponential growth in the country's GDP.
Under the new formula, a total of 29 counties will benefit, marking a significant departure from the previous system. However, not everyone is pleased with the change. Some counties are resisting the shift, claiming that they will be worse off under the new allocation.
These counties, which contribute a relatively small percentage of the country's GDP, are arguing that they are entitled to the same level of funding as before. However, the reality is that they only contribute a small fraction of the country's revenue, with Nairobi and Kiambu alone accounting for 30% of the GDP.
It's worth noting that the new formula takes into account a range of factors, including population, poverty indices, and landmass. This means that counties that were previously receiving fewer funds will now receive a greater share, while those that were getting more will see a reduction.
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