MPs approve new revenue sharing formula, warn counties on misuse of billions

Kenyan MPs during a recent National Assembly sitting. (Photo: National Assembly)

By Maureen Kinyanjui
Friday, June 27, 2025

Adopting the Fourth Basis for Revenue Sharing, MPs said they were dissatisfied with how counties have handled previous allocations, noting that development remains minimal despite steady increases in funding.

The National Assembly has endorsed a new formula for sharing revenue among counties for the next five financial years, allocating Sh415 billion and warning governors that continued misuse of public funds will not be tolerated.

Adopting the Fourth Basis for Revenue Sharing, MPs said they were dissatisfied with how counties have handled previous allocations, noting that development remains minimal despite steady increases in funding.

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Legislators stressed that they will no longer rubber-stamp budgets that do not translate to improved services for citizens.

According to the new formula, population will carry the biggest weight at 45 per cent, followed by an equal share at 35 per cent, poverty level at 12 per cent and land size at 8 per cent.

This basis will be used from the 2025/26 to the 2029/30 financial years.

Budget and Appropriation Committee Chairperson Samuel Atandi criticised some counties for failing to deliver essential services despite receiving billions.

“Some county governments have refused to graduate in providing services. They don’t hire doctors and don’t build hospitals. They have not undertaken any development projects using the resources they have received in the past,” he said.

Endebbes MP Robert Pukose also raised concerns over the misuse of devolved funds, saying that instead of focusing on development, some counties have been using money to fund political intimidation.

“Instead of using money for development, some county governments have resorted to utilising the allocations to employ goons who move from one constituency to another, intimidating lawmakers. We do not want to take that direction as a country,” he said.

Pukose, who is also the committee’s vice chairperson, called for accountability, saying that money has been looted at the county level with little to show for it.

“It is our hope that counties will use these resources for development. There have been cases of money disappearing, with nothing to show for it. Resources are being stolen left, right and centre,” he said.

Majority Whip Silvanus Osoro questioned the impact of county funding on ordinary Kenyans.

He noted that allocations have risen each year since 2013, yet most citizens have yet to feel the benefits.

“There have been efforts on increasing the amounts that go to counties, an indication of money going down to the people and villages. The question we need to ask ourselves is, does this money really get to the people and is used for the purpose it is intended for?” Osoro asked.

“About 70 per cent of the money we send to counties does not have an impact on the people. Kenyans are still struggling to see what these billions of shillings we send to their regions are doing.”