Twelve counties that have long lagged behind in development due to historical marginalisation will receive a special allocation of Sh4.46 billion in the 2025/26 financial year, following the enactment of the new Division of Revenue Act.

The allocation, known as the Affirmative Action Allocation, is intended to address inequalities and support development in the affected counties.

The beneficiaries include Elgeyo-Marakwet, Embu, Isiolo, Kirinyaga, Laikipia, Lamu, Nyamira, Nyandarua, Samburu, Taita-Taveta, Tharaka-Nithi and Vihiga.

President William Ruto has assented to the mediated version of the Division of Revenue Bill, unlocking a total of Sh415 billion for county governments as their equitable share in the upcoming financial year.

The mediated version was approved by both the National Assembly and Senate after lengthy negotiations in a joint mediation committee.

Each of the 12 counties will receive Sh371.6 million under the new allocation, which aims to address years of underdevelopment, poor infrastructure and limited access to services.

In addition to this, the Equalisation Fund has been allocated Sh9.6 billion to support 34 marginalised counties.

Budget and Appropriations Committee Chairperson Samuel Atandi, who also represents Alego Usonga, said the revised revenue sharing model is a reflection of Kenya’s commitment to fair resource distribution and inclusive growth.

“The Sh4.46 billion additional allocation to 12 counties is designed to compensate for historic underinvestment and help these regions to catch up in development,” he said.

He added that the revenue sharing formulas, reviewed every five years, are key to determining how resources are distributed across the country.

The revised formula introduces a two-tier County Equitable Share approach that relies on indicators such as the population index based on the 2019 census, the Equal Share Index, the Poverty Index from the 2022 KNBS Poverty Report, and the geographical size of each county.

“Many parameters have been used in the past when considering the allocation and sharing of resources among counties. This formula will ensure that counties that have not properly engaged in development programmes now have an opportunity to do so,” said Atandi.

Elgeyo-Marakwet, for instance, has suffered from recurring banditry and clashes with neighbouring Baringo and West Pokot, which have affected education and delayed infrastructure projects. Isiolo continues to face persistent droughts, low literacy rates and challenges in delivering health services to its nomadic population.

Lamu contends with insecurity linked to terrorism, limited infrastructure and low school enrolment, particularly in its remote islands. Samburu struggles with deep poverty, widespread cases of female genital mutilation, low school retention and frequent cattle rustling.

The Division of Revenue Act defines how revenue collected nationally is split between the national and county governments every year, ensuring equitable development and access to resources across all regions.