Details of the county revenue sharing formula

 
 

 1. Basic Equal Share factor, B:

  • All counties have certain basic fixed overheads that must be met regardless of any other paramete

 2. Population, P:

  • Services are delivered to people. The greater the number of people, the higher the cost of service delivery.

 , where ni is the population of the ith county and N is the national population

3. Accessibility, A:

  • The more scattered the people are, the greater the cost of service delivery.

  • Accessibility is directly related to the mean distance between points inside the county

  • This mean distance is proportional to the square root of the area of the county

, where, ai is the area of the ith county

4. Economic growth rate, E:

  •  When services are delivered effectively and efficiently, the society thrives and becomes more productive.

  • Productivity can be assessed in terms of Gross County Product (GCP)

  • For historical reasons, some counties have far greater GCP than others.

  • However, the rate of growth in GCP provides a good measure of the effort that the county government has put in uplifting the livelihoods of the people.

  • Therefore, the GCP growth rate is a good measure for rewarding those administrations that are putting greater effort.

  • NB: this is a good overall indicator of the effort counties are making in poverty alleviation, prudent effective and efficient utilisation of resources, etc.

, where ri is the GCP growth rate of the ith county

 
   
5. Individual county allocation:

The amount of money, mi allocated to the ith county will be: mi = 0.25M(B + Pi + Ai + Ei)
where M is the total sum of money available for distribution to the counties
     
  DOWNLOADS:  
  1. Revenue allocation per county based on above formula
  2. Revenue allocation per county from lowest to highest
  3. Comparison of allocations by above formula to CRA proposal
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