The Commission on Revenue Allocation (CRA) has proposed a new revenue-sharing formula that prioritizes population, stirring fierce debate among county leaders. The formula, which will guide allocations from the 2025-26 financial year, assigns a 42% weight to population, up from the current 18%. This mirrors the divisive “one man, one shilling” policy championed by leaders from populous regions, but it has drawn sharp criticism from those representing arid and sparsely populated areas.
Tana River Senator Danson Mungatana criticized the move, terming it a continuation of economic marginalization. “This formula perpetuates the neglect of arid and semi-arid areas, further widening economic disparities,” he said.
CRA Chairperson Mary Chebukati defended the formula, stating it aims to balance service delivery and economic disparities. Despite concerns, she assured no county would receive less than its current allocation, thanks to a proposed budget increase from Sh387.42 billion to Sh417.42 billion.
However, skepticism remains as the national government often underfunds counties. For instance, CRA’s Sh407 billion proposal for 2024 was slashed to Sh380 billion by the Executive before Parliament adjusted it to Sh387.42 billion.
Leaders from sparsely populated counties argue that the formula disproportionately disadvantages regions with vast landmasses. Mandera Senator Ali Roba dismissed it as “greedy,” pushing instead for a “one man, one shilling, one kilometer” formula that accounts for geographical size.
The CRA formula also adjusts other parameters: geographical size now weighs 9%, up from 8%, while poverty index retains its 14% weight. Additionally, the income distance index, a measure of inequality, has been introduced at 13%.
The new framework is poised to spark further debate, particularly from leaders advocating for equitable development in historically marginalized areas. According to Kitui Senator Enoch Wambua, “Kenya’s identity is rooted in both its people and its land. Resource allocation should reflect this dual reality.”
As the formula awaits parliamentary approval, the balancing act between equity and efficiency remains at the heart of the revenue-sharing debate, with potential implications for the country’s socio-economic cohesion.
