The Commission on Revenue Allocation (CRA) has adopted a controversial revenue-sharing formula prioritizing population, echoing the contentious “one man, one shilling” proposal.
Despite opposition from leaders of sparsely populated and marginalized counties, CRA assigned population the largest weight at 42%, up from 18% in the current formula. Counties with vast land areas, such as Turkana and Mandera, face potential reductions in allocation if the total county revenue remains at Sh387.42 billion.
CRA Chairperson Mary Chebukati defended the formula, emphasizing its goals of equitable service delivery and reducing economic disparities. To mitigate backlash, CRA proposes increasing county revenue to Sh417.42 billion, ensuring no county receives less than its current allocation.
The formula, effective from the 2025-26 financial year, introduces five parameters: population (42%), equal share (22%), poverty index (14%), geographical size (9%), and income distance (13%). Leaders from less populous regions, like Tana River Senator Danson Mungatana, criticized the formula, accusing it of perpetuating economic segregation.
Meanwhile, populous counties like Nakuru and Bungoma are set to benefit, narrowing funding gaps with less populated counties. The debate over fairness continues, with calls for transparency in how CRA assigned weights and concerns over the potential disadvantage to arid and semi-arid regions.
The proposed framework will guide revenue distribution for five years and awaits parliamentary approval.
