The objective of this paper is to suggest a framework on the basis of which a wealth allocation formula could be based in the context of the current (2003) conflict resolution efforts . The idea behind the framework is that of minimizing poverty in a two region economy (South and North) by allocating a given total of resources between the two regions. With poverty summarized by the head count ratio the resulting allocation formula depends on a number of poverty magnitudes such as the head count ratios for the two regions, the growth elasticity of poverty in each region and the elasticity of the per capita expenditure of the South to that of the North. Due to lack of information on poverty by region an indirect method of estimating the relevant poverty magnitudes is used. A major result of the paper is that Nakuru sharing formula of overall net revenue from oil (of 48% to the South) could be supported by the proposed framework and the derived formulae.