Smaller counties have been handed a major boost after Senators unanimously endorsed a Ksh3 billion windfall to spur their economic development and bring them closer to ‘other’ counties.

This is after the Senators approved the Fourth Basis for Allocating the Share of National Revenue among the counties for the Financial Years 2025/2026 to 2029/2030.

The 12 counties set to benefit are Elgeyo/Marakwet, Embu, Isiolo, Kirinyaga, Laikipia, Lamu, Nyamira, Samburu, Taita/Taveta, Tharaka Nithi, Vihiga and Nyandarua. The smaller counties used to get low allocations.

The formula has since been sent to the National Assembly for concurrence.

And for the National Assembly to alter the formula in any way, they will require a two-thirds majority of the member’s mean task to achieve.

Baseline formula

The new formula uses a baseline Allocation Ratio of Ksh387.425 billion allocated in the current financial year, and in addition, Ksh3 billion, which will be shared among the 12 counties.

The rest of the County allocation will be based on population index (0.45 per cent), Equal share (0.35 per cent), Poverty (0.12 per cent) and Geographical size index at 0.08 per cent respectively.

“That the Senate notes the Report of the Standing Committee on Finance and Budget on the Fourth Basis for Allocating the Share of National Revenue Among the Counties, approves the Fourth Basis for Allocating the Share of National Revenue Among the Counties for the Financial Years 2025/2026 to 2029/2030,” reads the report of the Finance and budget committee.

Mediation committee

The Ksh3 billion has been earmarked for the 12 counties if the mediation committee maintains the figure at Ksh405.1 billion.

However, should the 18-member joint team settle on more than Ksh415 billion, the smaller counties will have Sh4.46 billion ring-fenced for their development.

“For the National Assembly to alter the formula then they will need a two-thirds majority. We had agreed and unanimously endorsed that should we agree that counties will be allocated more than Ksh415 billion, then the 12 counties will be allocated Ksh4.46 billion,” said Senate Budget and Finance Vice Chair Tabitha Mutinda.

While debating the motion for the approval of the formula, Nandi lawmaker Samson Cherargei charged that the simulation, where each and every county will gain the allocation given to counties, will be significant, adding that counties cannot do significant or important developments in their counties because of the little allocation.

Eddy Oketch (Migori) argued that the baseline is to ensure that when resources are shared in the country or when the basis for sharing resources is considered, then no county ever loses what they have gotten.