The Senate in a past session.
Senators have joined the push for an increased allocation for county governments that received less than Sh6 billion.
Governors from the affected counties complained that they are struggling to deliver services.
According to the shareable revenue in the financial year ending June 30, 2025, four counties got less than Sh5 billion in the last allocation: Tharaka-Nithi received Sh4.39 billion, Lamu Sh3.25 billion, Isiolo Sh4.92 billion and Elgeyo-Marakwet Sh4.82 billion.
Counties that were given less than Sh6 billion are Taita-Taveta at Sh5 billion, Vihiga Sh5.29 billion, Nyamira Sh5.35 billion, Embu Sh5.36 billion, Laikipia Sh5.38 billion, Kirinyaga Sh5.4 billion, Samburu Sh5.62 billion and Nyandarua Sh5.93 billion.
Vihiga Governor Wilber Ottichilo said affirmative action is needed for counties getting less than Sh6 billion. He said it is difficult to develop effectively with such a tight budget.
“I feel like I should have just remained an MP because there was enough money for development projects,” he said.
The second-term governor asked senators to ensure that the proposed fourth basis for revenue sharing by the Commission on Revenue Allocation (CRA) recognises their challenges.
In the new formula proposed by the CRA, which is led by Ms Mary Chebukati, the counties with a higher population will receive more money.
Population will account for 42 per cent of the revenue allocation, up from 18 per cent in the current formula. Earlier parameters such as health, agriculture and roads have been dropped.
The formula, to be implemented after approval of Parliament, emphasises equal share (22 per cent), geographical size (9 per cent), poverty (14 per cent), and income distance (13 per cent) as the dominant factors.
But the proposal continues to face rejection from governors and senators, with the bone of contention being that it will lead to more than half of the 47 counties getting lower revenue shares.
While the nominal value of the revenue allocation will increase for all counties, the new formula means that some counties will get a bigger raise at the expense of others.
Samburu Governor Lati Lelelit said the CRA formula would be catastrophic to sparsely populated counties.
Kakamega Governor Fernandes Barasa asked the commission to use the third revenue allocation formula. He claimed that it ensured counties got a better share of revenue. The governor said that there was no need to rush to change the allocation formula.
“I want the Senate to reject the fourth formula because it is not tenable; there is no way you can introduce a formula that is making 21 counties lose money and then you introduce a stabilisation fund of Sh12 billion,” said Governor Barasa.
Kirinyaga Senator James Murango criticised the allocation formula, urging the commission to retain the current model to prevent budget cuts for 31 counties. He expressed concern that the new formula would leave many counties worse off.
Elgeyo-Marakwet Senator William Kisang’ said that they will fight for smaller counties to get more money.
Debate over revenue-sharing remains a highly sensitive and politically charged issue as counties rely on equitable allocations to support critical services, development projects and overall governance.
Approval of the current (third) formula was preceded by chaos and standoffs in the Senate, with lawmakers whose counties were set to lose cash opposing it.
Ten consecutive sittings failed to strike a deal on the formula. It took the intervention of former President Uhuru Kenyatta to increase the allocation to counties from Sh316 billion to Sh370 billion to ensure no county “lost funds” in the final formula.
