Mombasa Governor rejects proposed revenue sharing formula
The governor said the formula would disproportionately harm urban and coastal counties, including Mombasa.
Mombasa Governor Abdulswamad Sheriff Nassir has rejected the proposed Fourth Basis for revenue sharing among counties, describing it as deeply flawed and a threat to devolution.
Speaking at Lohana Hall during a scholarship cheque issuance ceremony for over 300 top-performing students, Governor Nassir said the formula would disproportionately harm urban and coastal counties, including Mombasa.
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“This formula, as it stands, is fundamentally unfair. It penalises key counties that drive our economy and undermines the principles of devolution that we fought to uphold,” he said.
The governor outlined several concerns with the formula, noting that it would lead to substantial funding losses for urban counties.
He emphasised that Mombasa and other city counties would bear the brunt of the changes.
“Cities like Mombasa, which are economic hubs, will lose critical allocations. You cannot grow a country’s economy by underfunding its cities,” he said.
Losses
Governor Nassir warned that the formula threatens devolution, with 21 counties, including Kisii, projected to lose up to Sh800 million.
“This is more than unfair, it is a direct threat to the very foundation of devolution,” he said.
He also criticised the “holding harmless” clause, calling it misleading. According to the governor, the clause only applies for the first year, after which counties like Mombasa could face severe budget cuts.
“There is no stability beyond the first year. Counties will be left vulnerable to drastic funding reductions,” he stated.
The Governor further questioned the increased weighting of land area in the formula, citing discrepancies in the data used.
“According to the Kenya National Bureau of Statistics, the country’s land area has shrunk by 481 square kilometres. Yet, this formula increases the land allocation weight from 8% to 9%. This is illogical,” he said.
Governor Nassir criticised the introduction of an economic distance parameter without public participation, calling it undemocratic.
“This parameter was never subjected to public consultation and should not form the basis of fund allocation,” he said.
The Governor urged the Council of Governors (CoG) to reject the formula and push for a more equitable revenue-sharing framework.
“We must protect devolution and ensure counties like Mombasa receive their fair share,” he said, pledging to rally support from other leaders.