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Proposed revenue formula could cut allocations for over half of Counties

A new revenue allocation formula proposed by the Commission on Revenue Allocation (CRA) led by Mary Chebukati could result in reduced funding for more than half of Kenya’s 47 counties if approved by Parliament.

Under the new formula, which places a heavy emphasis on population size, counties with larger populations will see increased allocations, with population accounting for 42% of the revenue share—up from 18% in the current system.

Counties such as Kitui, Kakamega, and Narok are expected to face significant cuts in their allocations. Conversely, counties like Isiolo and Wajir will benefit from substantial increases, receiving Ksh.945 million and Ksh.607 million more, respectively. Kajiado County is also set to gain Ksh.801 million, while Kericho, Samburu, and Vihiga will each receive over Ksh.300 million in additional funding through the new formula.

The proposed changes have been forwarded to the Senate for consideration. The Council of Governors is also scheduled to convene to discuss and formulate a position on the CRA’s new revenue-sharing proposal.

As discussions continue, the potential impact on counties facing cuts highlights the ongoing debate over equitable resource distribution in Kenya.

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