Constitution of Kenya, 2010
123
(a) the national interest;
(b) any provision that must be made in respect of the public
debt and other national obligations;
(c) the needs of the national government, determined by
objective criteria;
(d) the need to ensure that county governments are able to
perform the functions allocated to them;
(e) the fiscal capacity and efficiency of county governments;
(f) developmental and other needs of counties;
(g) economic disparities within and among counties and the
need to remedy them;
(h) the need for affirmative action in respect of disadvantaged
areas and groups;
(i) the need for economic optimisation of each county and to
provide incentives for each county to optimise its capacity
to raise revenue;
(j) the desirability of stable and predictable allocations of
revenue; and
(k) the need for flexibility in responding to emergencies and
other temporary needs, based on similar objective criteria.
(2) For every financial year, the equitable share of the revenue
raised nationally that is allocated to county governments shall be
not less than fifteen per cent of all revenue collected by the national
government.
(3) The amount referred to in clause (2) shall be calculated on
the basis of the most recent audited accounts of revenue received, as
approved by the National Assembly.
204. (1) There is established an Equalisation Fund into which shall Equalisation Fund.
be paid one half per cent of all the revenue collected by the national
government each year calculated on the basis of the most recent audited
accounts of revenue received, as approved by the National Assembly.
(2) The national government shall use the Equalisation Fund only