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CRA reveals Sh398bn counties cash share formula

Nairobi, Turkana, Nakuru, Kakamega, Kiambu and Mandera are the top beneficiaries

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by JULIUS OTIENO

News05 January 2024 - 01:36
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In Summary


  • • The national government share of revenue will increase by Sh374.72 billion and county governments by Sh22.52 billion.
  • • In the allocation, CRA has given Nairobi the highest allocation in the next financial year.
Governors during a meeting on December 15, 2023.

Nairobi, Turkana, Nakuru, Kakamega, Kiambu and Mandera will get the lion’s share of the Sh398.14 billion county allocation proposed by the Commission on Revenue Allocation in 2024-25.

The commission, in its proposal that has since been sent to Parliament for consideration, has given all the 47 devolved units Sh398.14 billion up from the current Sh385.5 billion of the revenue raised nationally.

“The commission recommends that the national government be allocated Sh2.55 trillion and county governments Sh398.14 billion as equitable shared,” CRA chairperson Mary Chebukati said.

This implies that the national government share of revenue will increase by Sh374.72 billion and county governments by Sh22.52 billion.

In the allocation, CRA has given Nairobi the highest allocation in the next financial year.

The Governor Johnson Sakaja-led county will get Sh700 million, from the current Sh20.05 billion to Sh20.75 billion.

Nairobi has since the advent of devolution in 2013, received the highest amount of allocation.

This can be attributed the high population of about five million people and high poverty levels especially in the informal settlements.

Turkana has been allocated Sh13.58 billion from Sh13.14 billion while Governor Susan Kihika’s Nakuru is to get Sh14.06 billion from the current Sh13.59 billion.

Governor Fernandes Barasa led-Kakamega county will receive Sh13.44 billion up from the current Sh12.91 billion while Kiambu will get Sh12.64 billion compared to Sh12.22 billion it’s receiving in the current fiscal year.

Mandera will get Sh11.99 billion compared to Sh11.63 billion it’s receiving in the current financial year.

Other top beneficiaries are Bungoma (Sh11.48 billion), Kilifi (Sh12.49 billion), Kitui (Sh11.19 billion), Wajir (Sh10.16 billion), Marsabit (Sh10.22 billion) and Machakos (Sh9.86 billion).

Others are Kisii (Sh9.55 billion), Narok (Sh9.48 billion), Mombasa (Sh8.10 billion), Kisumu (Sh8.63 billion), Kwale (Sh8.84 billion), Migori (Sh8.61 billion) and Uasin Gishu (Sh8.72 billion).

Conversely, Lamu, Elgeyo Marakwet, Tharaka Nithi, Isiolo, Nyamira and Laikipia have been allocated the least amounts in the proposal by the commission.

Lamu will get the least amount of Sh3.34 billion up from the current Sh3.23 billion followed by Elgeyo Marakwet, which will receive Sh4.96 billion compared to Sh4.80 billion it’s getting the current financial year.

Tharaka Nithi county has been allocated Sh4.51 billion against Sh4.37 billion it’s getting currently while Isiolo’s allocation has increased to Sh5.05 billion from Sh4.89 billion.

Nyamira will get Sh5.47 billion while Laikipia will receive Sh5.54 billion from Sh5.35 billion it’s receiving currently.

Also set to receive the least allocations are Taita Taveta (Sh5.20 billion), Vihiga (Sh5.43 billion), Kirinyaga (Sh5.60 billion), Embu (Sh5.52 billion), Kericho (Sh6.92 billion) and West Pokot (Sh6.80 billion).

“The determination of each county’s equitable share is based on the Third Basis for revenue sharing for financial year 2020-21 to 2024-25,” Chebukati said.

Section 190 (1)(b) of the PFMA, 2012 mandates the commission to recommend the determination of each county’s equitable share in the county share of that revenue.

The Third Basis for revenue sharing has a baseline allocation to each county equivalent to 50 per cent of a county’s actual allocation for financial year 2019/20 of Sh316.5 billion.

The remaining amount from the recommendation is shared based certain indices including land area, poverty level, health, agriculture and population.

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