President Uhuru Kenyatta wants the urban poor to be considered for the Equalisation Fund like other marginalised communities in the rural areas.
He said the urban poor – mainly those in informal settlements – live in precarious conditions and also need to be accorded equal consideration.
The Equalisation Fund seeks to provide services in accordance with communities' priorities such as health, education, infrastructure, energy, and water.
President Uhuru made the appeal at State House, Nairobi on Tuesday.
He spoke after receiving a report on the 'Second Policy Identifying Marginalised Areas of Kenya and the Criteria for Sharing Revenue from the Equalisation Fund'.
The report was presented to the President by the Commission on Revenue Allocation (CRA) chairperson Jane Kiringai.
The Commission said it would take on board the President’s concerns.
The Second Policy will be used to share revenue from the Equalisation Fund for period ending 2021.
While the first Marginalisation Policy focused on the identification of marginalised counties, the second policy shifts focus to marginalised areas.
To identify the marginalised areas, the Commission used an index of deprivation constructed using information on access to safe water, school attendance, access to improved sanitation and electricity.
The President commended the Commission for the good report on how to distribute financial resources to provide services to the poorest communities in accordance with their own priorities through public participation.
The CRA team recommended a comprehensive framework for engaging the beneficiary communities in the implementation of projects in the identified priority areas.