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Poor counties in Kenya may lose billions in new formula to share revenue

NAIROBI: A new formula to guide allocation of billions of national revenues to the 47 county governments would see up to 30 counties lose hundreds of millions of their share from the national pot.

The Commission on Revenue Allocation has proposed that in the calculation to decide allocation to each county, 45 per cent of the allocation shall be based on population, 26 per cent shall be divided equally among all the 47 counties, 18 per cent on poverty index, eight per cent based on geographical size of a county, two per cent will be based on how much a county collects, and one per cent will be based on the level of development in each county.

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