The period for negotiation of the third-generation revenue sharing formula is finally here. While the last two formulae were discussed and approved without much fuss, the battle lines are already drawn for this third one. For those not in the know, horizontal revenue sharing between the 47 counties is based on a formula that is proposed by the Commission on Revenue Allocation and approved by Parliament every five years.
The first two formulae were to last three years each and the current one therefore comes to an end in the financial year 2018/2019. The current formula, which is up for review, divides revenue on the basis of four major parameters and two minor ones.