Quick Answer
Counties are funded mainly by an “equitable share” of nationally raised revenue — at least 15% each year under the Constitution — topped up by the Equalisation Fund, conditional grants, and the money counties raise themselves.
Key facts
- Counties get at least 15% of national revenue (Article 203).
- The Commission on Revenue Allocation (CRA) recommends the split.
- An Equalisation Fund (0.5% of revenue) targets marginalised areas.
- Counties also raise own-source revenue (fees, licences, rates).
The equitable share
The largest source of county money is the equitable share of nationally raised revenue. The Constitution (Article 203) guarantees counties at least 15% of national revenue each year, calculated on the most recent audited and approved accounts. In practice, Parliament sets a specific shilling figure each year, which has grown over time.
The exact annual amount changes every financial year — always cite the current Division of Revenue Act figure and date it when you publish.
Who decides the split
The division of money happens in stages:
- The Commission on Revenue Allocation (CRA) recommends how revenue should be shared — both between the two levels (vertical) and among the 47 counties (horizontal).
- The Division of Revenue Act sets the split between national and county government.
- The County Allocation of Revenue Act then divides the county pool among the 47 counties.
- The Senate plays a central role in passing these allocations and protecting county shares.
How money is shared among the 47 counties
Counties are not all equal in size or need, so a formula spreads the money using several parameters — currently population, a basic equal share, land area, poverty level, and income distance (based on each county’s economic output). This aims to balance need with fairness.
Other sources of county money
Beyond the equitable share, counties receive:
- The Equalisation Fund — 0.5% of national revenue (Article 204), directed to historically marginalised areas.
- Conditional and additional grants — ring-fenced funds for specific programmes, sometimes donor-supported.
- Own-source revenue — money counties raise themselves through fees, licences, parking, market charges and property rates.
Why this matters to you
How much your county receives — and whether it is spent well — shapes the quality of your local hospital, roads and water. When leaders argue about counties getting “enough money,” this is the system they are arguing about, and your Senator is your voice in it.
Frequently asked questions
What is the minimum counties must receive?
At least 15% of nationally raised revenue, based on the most recent audited accounts (Article 203).
What is the Equalisation Fund?
A fund equal to 0.5% of national revenue, used to bring services in marginalised areas up to the rest of the country.
Who recommends how revenue is shared?
The Commission on Revenue Allocation (CRA), with the split enacted through the Division of Revenue and County Allocation of Revenue Acts.
Sources & references
- Constitution of Kenya 2010, Articles 202–204 and 215–216 — klrc.go.ke
- Commission on Revenue Allocation (CRA) — cra.go.ke
- Division of Revenue Act (current financial year) — kenyalaw.org