Written By Lisa Murimi
The Commission on Revenue Allocation (CRA) has concluded its consultations with all 47 county governments on the draft Fourth Basis for Revenue Sharing Among Counties Formula, marking a significant step in ensuring equitable distribution of national funds.
This new formula aims to address regional disparities and promote balanced development by allocating funds based on population size, land area, poverty index, and fiscal capacity.
Counties with larger populations will receive increased resources to meet resident needs, while larger land areas may warrant additional funding to manage extensive service delivery.
Higher funding is also directed to counties with greater poverty challenges, and fiscal capacity ensures support for those with lower revenue-raising abilities.
“CRA adheres to the revenue-sharing criteria in Article 203 of the Constitution, focusing on county capacity, development needs, economic disparities, and revenue stability,” the commission stated.
The formula uses a weighted approach to ensure fair distribution and support balanced regional development.
Council of Governors Chairperson Anne Waiguru emphasized the importance of using accurate data in the formula’s development. “The indicators, including population size, geographical area, and poverty index, are crucial for ensuring equitable development across all counties,” she said.
A special committee of governors will collaborate with the CRA to refine the formula and integrate feedback, aiming to enhance access to quality services and infrastructure across Kenya.
This collaborative effort underscores a shared commitment to improving the quality of life and achieving balanced growth throughout the country.
