Lamu and Tharaka Nithi counties have topped the list of the 12 counties that are set to benefit highly after Parliament adopted the new County Allocation of Revenue Bill.
In a statement from Parliament on Wednesday, August 6, the Budgets and Appropriations Committee confirmed that counties will share a new pot of Ksh415 billion for the 2025/2026 fiscal year.
"The Budget and Appropriations Committee has officially adopted the County Allocation of Revenue Bill, 2025 (Senate Bill No. 9 of 2025). This sets the equitable share of revenue to be disbursed to County Governments at Ksh415 billion for the Financial Year 2025/26," the statement read in part.
"This figure was agreed upon following the conclusion of the mediation process on the Division of Revenue Bill, 2025, between the National Assembly and the Senate."
This allocation will see 12 counties receive an increase in allocation, with Lamu leading with a whopping 18.53 per cent increase and Tharaka Nithi following closely with a 14.97 per cent increase in allocation.
Isiolo county will receive 14.38 per cent, Elgeyo-Marakwet 14.26 per cent, Taita-Taveta 13.70 per cent, Vihiga 13.52 per cent, Laikipia 13.31 per cent, Nyamira 13.31 per cent, Embu 13.18 per cent, Kirinyaga 12.89 per cent, Samburu 12.69 per cent and lastly, Nyandarua with 12.23 per cent.
The bill contains two schedules, with Schedule 1 outlining the equitable share allocated to each of the 47 counties and Schedule 2 providing ceilings on recurrent expenditures for county assemblies and county executives.
The Ksh415 billion will be shared on the Fourth Revenue Sharing Basis, which Parliament approved on June 24, and the formula will guide allocations for five years from FY 2025/26 to FY 2029/30.
As such, the counties will first receive a base allocation of Ksh387.425 billion issued in the 2024/2025 FY, then there will be an affirmative Ksh4.46 billion equally shared among 12 marginalised counties and lastly an additional Ksh23.115 billion distributed based on the new formula.
The 12 marginalised counties will share Ksh8.35 billion of all the additional Ksh27 billion based on parameters set in the fourth schedule.
The new county allocation formula will consider four parameters, with the county's population index accounting for the majority of the share at 45 per cent.
Basic share index will account for 35 per cent, the poverty index will account for 12 per cent and finally, the geographical size index will account for 8 per cent of the allocation.
