Some 31 counties could lose at least Sh7.74 billion in revenue if Parliament approves the Commission on Revenue Allocation proposal.
This loss is based on the current allocation of Sh387.42 billion, however, the amount that the devolved units potentially stand to lose could be greater if Parliament endorses the formula and fails to raise the allocation to a specified limit.
According to CRA, none of the 47 devolved units will lose revenue if Parliament gives them a minimum of Sh417.42 billion.
“In implementing the Fourth Basis, a cushioning and stabilisation factor has been built in the framework to ensure no county government gets less than what they were allocated in the financial year 2024-25,” said CRA chairperson Mary Chebukati in a report to the Senate.
However, the National Treasury has proposed an allocation of Sh405 billion, indicating many counties may lose revenue if the formula is approved.
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