The Senate struck an agreement to pass the revenue formula that had taken a record 10 debate sessions to finalise.
The formula, which has been described as a win-win formula which was spear headed by Senator Johnson Sakaja, has stipulated how much revenue counties will get in both the financial year 2020/21 and 2021/22.
According to the document seen by Kenyans.co.ke, for the current financial year, counties would still get the same sum they had been allocated in the 2019/20 financial year that ended in June.
The new increased allocation would only take off in the 2021/22 financial year starting June 2021, which was made possible after President Uhuru Kenyatta promised a Ksh53 billion increase on September 15.
The newly passed formula takes into account 8 parameters including Basic share at 20%, Population 18%, Health 17%, Poverty Level 14%, Agriculture 10%, Roads 8%, Land 8% and Urban areas 5%.
Nairobi will get the highest increment at Ksh3.3 billion bringing its total allocation to Ksh19 billion, followed by Nakuru County which will gain an extra Ksh2.5 billion to bring its total allocation to Ksh13 billion.
Kiambu County will receive an extra Ksh2.2 billion to raise its allocation to Ksh11.7 billion and Turkana County gets Ksh2 billion extra cash, taking the total to Ksh12 billion.
Since the bill stated that no county would receive less than what had been allocated in the previous financial year, non of the 47 counties would be deemed to have lost.
However, a few counties were not as lucky to get increaments as huge as Nairobi, Nakuru or Kiambu.
Tharaka Nithi will get the least addition of Ksh289 million to raise its total allocation to 4 billion while Lamu County which often receives the least revenue will have its total allocation rise to Sh3.1 billion after gaining an extra Sh510 million.
The formula will now see counties receive Sh370 billion starting 2021/22 to 2024/25 financial years.
"I want to thank the President because we'd gone for weeks without resolution. The authority and dignity of the Senate was being questioned.
"You remember that last year we were being told that we cannot add even Ksh5 billion but the Senate has negotiated and gotten an extra Ksh53.5 billion," Senator James Orengo praised.
