Members of the National Assembly have adopted a new revenue sharing formula that will guide how resources are distributed among counties from the 2025/26 to 2029/30 financial years, cautioning governors against misuse of funds amid rising concerns over poor service delivery.

While approving the Fourth Basis for Revenue Sharing, MPs voiced frustration that counties have consistently received increased allocations each year, yet there is minimal visible development. They warned that it will no longer be business as usual and vowed not to approve funding that is not used for the intended purpose.

Under the new formula, population remains the key factor at 45 percent, followed by equal share at 35 percent, poverty level at 12 percent, and land size at 8 percent. Counties are expected to share Sh415 billion as equitable allocation in the upcoming financial year.

Budget and Appropriation Committee Chairperson Samuel Atandi emphasised that the money sent to counties should transform public services.

“Some county governments have refused to graduate in providing services. They don’t hire doctors and don’t build hospitals,” the Alego Usonga MP said. “They have not undertaken any development projects using the resources they have received in the past.”

Endebbes MP Robert Pukose echoed these sentiments, accusing some devolved units of diverting funds to activities unrelated to development.

“Instead of using money for development, some county governments have resorted to utilising the allocations to employ goons who move from one constituency to another, intimidating lawmakers. We do not want to take that direction as a country,” he said.

Pukose, who is also the vice chairperson of the Budget and Appropriation Committee, expressed concern over past misuse of public funds. “It is our hope that counties will use these resources for development.

There have been cases of money disappearing, with nothing to show for it. Resources are being stolen left, right and centre,” he said. He added that with the adopted formula, some counties like Trans Nzoia will benefit from additional funding, with the county set to receive an extra Sh100 million.

National Assembly Majority Whip Silvanus Osoro called on counties to account for the rising allocations, noting that since the inception of devolution in 2013, resources to counties have steadily increased.

“There have been efforts on increasing the amounts that go to counties, an indication of money going down to the people and villages. The question we need to ask ourselves is, does this money really get to the people and used for the purpose it is intended for?” he posed.

“About 70 per cent of the money we send to counties does not have an impact on the people. Kenyans are still struggling to see what these billions of shillings we send to their regions are doing,” Osoro added.

The approval follows the constitutional process, with Article 216 (1)(b) mandating the Commission on Revenue Allocation to recommend the formula, and Article 217 (2)(b) requiring the Senate to consider those recommendations before adoption. The agreed formula will be used for the next five financial years.