Kenya’s Revenue Sharing: Nairobi and Turkana Lead Amid Equity and Development Debates

By Benadeta Mwaura - Reporter

Kenya, 27 January 2026 - New data from the National Treasury indicates that Nairobi and Turkana counties have emerged as the largest beneficiaries of Kenya’s equitable revenue share since devolution began in the 2013/14 financial year.

Cumulatively, counties have received KSh 4.04 trillion in equitable revenue and related allocations up to the 2024/25 financial year, with Nairobi topping the list at KSh 195.6 billion, followed by Turkana at KSh 138 billion, Nakuru at KSh 135 billion, Kilifi at KSh 129 billion, and Kiambu at KSh 128 billion.

The significant allocations, however, also highlight the ongoing debate over whether the current revenue-sharing model sufficiently addresses development disparities across the country.

Critics argue that while some counties receive large sums, the impact on public service delivery and infrastructure development varies widely, with many residents questioning whether the funding translates into tangible improvements.

The Fourth Basis Revenue Sharing Formula, refined by Parliament in 2025 for the 2025/26–2029/30 period, governs the equitable distribution of national revenue among counties. Under this formula, the allocation is determined primarily by population, which accounts for 45% of the share, followed by a basic equal share index at 35%, a poverty index at 12%, and geographic size at 8%.

These criteria are designed to balance the twin objectives of fairness and need, ensuring that counties with larger populations, higher poverty levels, or expansive territories receive resources commensurate with their development challenges.

The Senate Weekly Issue No. 35 highlights how the County Allocation of Revenue Bill and earlier discussions on the Division of Revenue Bill have influenced devolved financing.

In the 2024/25 cycle, the Senate negotiated an enhanced allocation of KSh 400.1 billion for counties after disputes during the budget approval process, illustrating lawmakers’ insistence on ensuring counties have sufficient resources to perform their devolved functions.

Lawmakers have further proposed increasing the equitable share to Sh500 billion by the end of the current parliamentary session, demonstrating a commitment to strengthening county capacity over the medium term.

More from Kenya

Africa’s FinTech Ecosystem Strengthens with Innovation-Focused Academies

Sudanese Army Recaptures Key Area Near Ethiopia Border Amid Prolonged Civil War

Despite these allocations, concerns about equitable development persist. Some counties, including Mandera and Wajir, have received substantial sums yet continue to face challenges in service delivery, highlighting gaps in governance, planning, and accountability.

This tension underscores ongoing debates in Parliament, where Senators emphasize that allocation alone is not enough; funds must be effectively managed to achieve meaningful social and economic outcomes.

Cash flow challenges further complicate the picture. Delays in disbursements, late enactment of supplementary allocation laws, and fiscal pressures from donor conditions or currency fluctuations have, at times, disrupted county operations.

These issues have occasionally led to delayed salaries and accumulation of pending bills, showing that large allocations do not automatically guarantee efficient service delivery.

As Kenya’s equitable revenue sharing framework evolves, policymakers are increasingly focusing not only on how much is allocated, but also on how funds are used.

The experience of Nairobi and Turkana counties illustrates both the potential and the challenges of devolution: substantial financial transfers are available, yet translating this funding into measurable improvements in citizens’ lives remains a persistent governance test.

Legislative refinements and parliamentary oversight continue to shape the distribution and utilisation of funds, signalling a maturing devolution architecture that seeks to balance equity, accountability, and development impact.