Nairobi gets lion's share of Sh415b as new formula takes effect

Senate Finance and Budget Committee chairperson, Ali Roba. [File, Standard]

A proposed law has given a breakdown of how revenue raised in the financial year 2025/2026 should be shared among county governments.

The County Allocation of Revenue Bill, 2025, by the Senate Finance and Budget Committee provides how the 47 counties will share out Sh415 billion, with Nairobi County getting the highest amount at Sh21.4 billion

“Each county governments’ equitable share of revenue raised nationally on the basis of the revenue sharing formula approved by Parliament in accordance with Article 217 of the Constitution in respect of the financial year 2025/26 is clearly set out,” said committee chairperson, Ali Roba.

According to the Bill, Nakuru County will receive Sh14.4 billion, the second highest, while Turkana and Kakamega have been allocated Sh13.8 billion and Sh13.6 billion respectively.

At the bottom of the table is Taita Taveta, Isiolo, Elgeyo Marakwet, Tharaka Nithi and Lamu counties, which will get Sh5.7 billion, Sh5.6 billion, Sh5.5 billion, Sh5.05 billion and Sh3.8 billion respectively.

Kiambu will receive Sh13.07 billion, Kilifi ( Sh12.8 billion), Mandera (Sh12.2 billion), Bungoma ( Sh11.8 billion) and Kitui County (Sh11.5 billion).

Wajir has been allocated Sh10.5 billion, Meru (Sh10.5 billion), Machakos (Sh10.1 billion), Kisii (Sh9.8 billion), Narok (Sh9.7 billion), Kwale (Sh 9.07 billion), Makueni (Sh8.9 billion) and Uasin Gishu (Sh8.9 billion).

Kisumu will receive Sh8.9 billion, Migori (Sh8.8 billion), Garissa (Sh8.8 billion), Kajiado (Sh8.8 billion), Homa Bay (Sh8.6 billion), Mombasa (Sh8.3 billion), Marsabit (Sh8.1 billion), Busia (Sh7.9 billion) and Murang’a (Sh7.9 billion).

Trans Nzoia has been allocated Sh7.9 billion, Nandi (Sh7.7 billion), Siaya (Sh7.7 billion), Bomet (Sh7.4 billion), Tana River (Sh7.2 billion), Kericho (Sh7.1 billion), Baringo (Sh7 billion) and West Pokot (Sh7 billion).

Nyeri will get Sh 6.8 billion, Nyandarua (6.6 billion), Samburu (Sh6.3 billion), Kirinyaga (Sh 6.1 billion), Laikipia (Sh 6.1 billion), Nyamira (Sh6. 07 billion), Embu (Sh6.07 billion) and Vihiga (Sh6 billion).

The allocation is based on the fourth-generation formula approved by Parliament in June, which is applicable from this financial year to 2029/2030. It takes into account population (45 per cent), poverty index (12 per cent), geographical size index (8 per cent), and basic share index (35 per cent).

Roba said the proposed equitable revenue share allocation was informed by the "increased expenditures for National Government for purposes of debt servicing, coupled with a weakened shilling against the dollar.” 

The Mandera Senator said trends in the performance of revenue was considered in determining the Sh27.6 billion increase in the equitable share.

Roba said shortfalls in national revenue, the county governments continue to receive their full allocation as the national government suffers budget cuts.