NAIROBI, Kenya – The National Assembly has approved a new revenue-sharing formula that will govern how funds are allocated to counties for the next five years, setting the equitable share at Sh415 billion for the 2025/26 to 2029/30 financial years.
But along with the approval came a strong warning to governors: continued misuse of public funds will not be tolerated.
Lawmakers adopted the Fourth Basis for Revenue Sharing, giving population the highest weight at 45%, followed by an equal share (35%), poverty level (12%), and land size (8%).
The formula is designed to distribute resources more fairly, but MPs expressed deep frustration over how counties have historically managed public funds.
“Some county governments have refused to graduate in providing services,” said Budget and Appropriations Committee Chairperson Samuel Atandi. “They don’t hire doctors, they don’t build hospitals, and they have not undertaken any development projects using the resources they’ve received.”
MPs from across the political divide echoed similar concerns, painting a grim picture of counties that continue to receive growing allocations without translating them into real services for citizens.
Committee vice-chair and Endebbes MP Robert Pukose accused some devolved units of diverting funds to political intimidation and patronage networks.
“Instead of using money for development, some county governments have resorted to employing goons to intimidate lawmakers. We do not want to take that direction as a country,” Pukose said.
He added that looting of county funds has become rampant, with little accountability.
“Resources are being stolen left, right and centre,” he warned. “We hope that with this new formula, counties will use funds to improve people’s lives and not enrich a few individuals.”
Majority Whip Silvanus Osoro questioned the impact of over a decade of devolution, noting that allocations have steadily increased since 2013 but ordinary Kenyans are still struggling to see the results.
“About 70 per cent of the money we send to counties does not have an impact on the people,” said Osoro. “We need to ask ourselves: does this money reach the villages? Is it being used for the purpose it is intended for?”
While the approval of the new formula marks a key milestone, it also sets the stage for renewed tension between Parliament, governors, and the Commission on Revenue Allocation (CRA).
The CRA recommends revenue sharing ratios, while the Senate is tasked with approving the proposals, often triggering political wrangles with the National Assembly.
With disbursement delays, pending bills, and allegations of corruption piling up, lawmakers now say the era of unchecked devolution spending is over.
“We will no longer rubber-stamp budgets that don’t improve lives,” Atandi concluded.
The approval comes at a time when governors are lobbying for an urgent meeting with President William Ruto over delayed disbursements and the stalled transfer of health workers under the Universal Health Coverage (UHC) programme.
