Parliament has approved, without any amendments, the third County revenue sharing formula, paving way for it to kick in when the 2021/22 financial year begins in July next year.
On September 17, the Senate passed the controversial third County Revenue Allocation formula after lengthy and acrimonious debates- complete with political intrigues.
This new revenue sharing formula will be used from 2021/22 financial year and for the next five years to 2025/26.
This formula will be used as a basis for allocating KSh 370 Million that counties will receive in the coming financial year. Until then, the present allocation format remains in operation.
Each country will receive allocations at the rate of 20% as basic share, Population (18 per cent), Health (17 per cent), Poverty Level (14 per cent), Agriculture (10 per cent), Roads (8 per cent), Land (8 per cent) and Urban (5 per cent).
In the new formula, Nairobi is the top gainer with its allocation edging up KSh3.3 billion to KSh19 billion. Other winners include Nakuru, whose allocation goes up by KSh2.5 Billion, Kiambu by KSh2.2 Billion, and Turkana by KSh2 Billion.
The Commission for Revenue Allocation (CRA) used data from the 2019 population census and the 2015/16 Kenya Integrated Household Budget Survey poverty index, while making its recommendations to Senate.
Kakamega will gain KSh1.9 billion, Bungoma KSh1.7 billion, Nandi KSh1.5 billion, Kitui KSh1.5 billion and Kajiado KSh1.4 billion.
List of counties that will receive the least additions include Tharaka Nithi (KSh289 million), Nyamira (KSh324 million), Vihiga (KSh414 million), Isiolo (KSh469 million), Kwale KSh479 million and Marsabit KSh503 million.
The new revenue sharing formula, that will be in place for the next five years, was recommended to the Senate by the CRA as per Article 217(1) of the constitution.
In accordance with the requirements of Article 216 (1) of the Constitution of Kenya, the Commission on Revenue Allocation presents the recommendations on equitable sharing of revenue among county governments to the senate every five years.