The Parliament in Kenya has approved the third (3rd) County Revenue Sharing Formula, without making any amendments. With this development it’s implementation is set to commence immediately the 2021 to 2022 financial year begins in July of 2021.
This new County Revenue Sharing Formula will also be utilized for the next five (5) years until the 2025 to 2026 financial year.
On the 17th of September 2020 the Senate passed the third (3rd) County Revenue Allocation. This came after a number of lengthy debates.
Once implemented, the new formula will be used in the allocation of the 370 million Kenyan Shillings that counties in Kenya will receive in the next financial year (2021 to 2022 starting in July of 2021).
The current allocation formula will continue to be used until then.
Counties will in the new County Revenue Sharing Formula each receive allocations at the rate of 5 percent for Urban, 8 percent for Roads, 8 percent for Land, 10 percent for Agriculture, 14 percent for Property Level, 17 percent for Health, 18 percent for Population and 20 percent being the basic share.
Counties with the most allocations will be Nairobi with its revenue seeing a boost of 3.3 billion Kenyan Shillings bringing its total to 19 billion Kenyan Shillings, Nakuru which increases by 2.5 billion Kenyan Shillings, Kiambu by 2.2 billion Kenyan Shillings and Turkana by 2 billion Kenyan Shillings.
Kajiado will gain 1.4 billion Kenyan Shillings, Kitui 1.5 billion Kenyan Shillings, Nandi 1.5 billion Kenyan Shillings, Bungoma 1.7 billion Kenyan Shillings, and Kamamega 1.9 billion Kenyan Shillings.
Counties who will be allocated the lowest additions are Marsabit with 503 million Kenyan Shillings, Kwale with 479 million Kenyan Shillings, Isiolo with 469 million Kenyan Shillings, Vihiga with 414 million Kenyan Shillings, Nyamira with 324 million Kenyan Shillings, and Tharaka Nithi with 289 million Kenyan Shillings.
The Commission for Revenue Allocation (CRA) utilized the data from population census which was carried out in 2019 as well as the 2015 to 2016 Kenya Integrated Household Budget Survey Poverty Index.
It then made its recommendations known to the Senate as per the Constitution of Kenya.
Every five (5) years the Commission for Revenue Allocation (CRA) presents all recommendations regarding equitable sharing of revenue among county governments to the Senate, in according to The Constitution.
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