NAIROBI, Kenya, Feb 25 – The Commission on Revenue Allocation (CRA) has proposed allocating Sh458.94 billion to county governments in the 2026/27 financial year, citing higher projected revenue collection.
CRA Chairperson Mary Wanyonyi Chebukati said revenue is projected to increase from Sh2.74 trillion in 2025/26 to Sh2.9 trillion in 2026/27, justifying a higher share to devolved units.
However, Samuel Atandi, Chair of the National Assembly’s Budget and Appropriations Committee, sought clarification on how the Commission arrived at the proposed allocation.
“Being cognizant of the most important factors in the sharing of revenue between the National and County governments, how did you arrive at the proposed resource allocation to the County Governments?” Atandi posed.
In response, the CRA argued that increasing the county allocation by only Sh5 billion while allocating about Sh152.5 billion more to the national government would be unfair, raising concerns over equity in resource sharing.
The Commission said it had taken into account the service delivery responsibilities assigned to county governments.
It also recommended that the national government enter into intergovernmental agreements where devolved functions are budgeted at the national level, to ensure projects are completed and operational.
Auditor-General flags funding gap
The Committee also reviewed submissions from the Office of the Auditor-General (OAG), led by Auditor-General Nancy Gathungu.
Gathungu raised concerns over the proposed Sh8.8 billion allocation to the OAG in the Budget Policy Statement, saying the office faces a Sh2.3 billion shortfall.
She warned that the funding gap would limit the OAG’s ability to audit more than 12,000 entities under its mandate, including newly incorporated Level 2 and 3 hospitals and Technical and Vocational Education and Training (TVET) institutions.
The Committee is expected to scrutinise submissions from both the CRA and OAG before tabling a report to guide debate and final approval of the fiscal framework in the House.
