This archive report was first published on 5 December 2019.
Kenya's new revenue allocation formula, set to be adopted in the coming financial year, will see Nairobi County receive KSh21.2 billion, a KSh 5.4 billion increase from the national revenue kitty of KSh 313.9 billion.
According to the Commission on Revenue Allocation (CRA), the new formula is based on population figures and will prioritize counties with larger populations.
Under the new arrangement, Nakuru County will see its allocation increase from KSh 9.4 Billion to KSh 12.5 Billion, a 25 percent increase, making it the second-largest gainer.
Uasin Gishu will be the third-largest gainer with an allocation of KSh 7.7 billion from the previous KSh 5.9 Billion.
Other counties that will receive increased allocations include Kakamega, Nandi, Kajiado, Kirinyaga, and Busia.
However, Lamu and Tharaka Nithi will be the biggest losers, with their allocations falling by KSh 2.4 billion and KSh 1.2 billion, respectively.
The CRA has introduced a new revenue sharing formula that assigns weights to various parameters, including population (45%), equal share (26%), poverty gap (18%), land area (8%), fiscal effort (2%), and development index (1%).
The new formula will be used to share revenues among counties for a period of five years, effective 2019/2020.
Public participation on the new revenue sharing proposal will begin on 5th December 2019.
Former Cabinet Minister Martha Karua emphasized the need for proper spending of public money at both the national and county levels.
