NAIROBI, Kenya, Jun 12 – The National Treasury has proposed an allocation of Sh405 billion to counties in the 2025/26 financial year.This marks an increase of Sh17.6 billion from the Sh387.4 billion allocated to devolved units in the current financial year,
Delivering his maiden budget statement in the National Assembly, Treasury Cabinet Secretary John Mbadi affirmed the government’s commitment to economic recovery and fiscal discipline, while highlighting improved economic performance.
“This budget reaffirms the priority policies and strategies aimed at stimulating economic recovery. I remain mindful of the aspirations and high expectations of Kenyans,” said Mbadi.
However, the division of revenue between the National and County governments remains a contentious issue.
The proposal of Sh405 billion in equitable share though a step up from last year has triggered a fresh standoff between the Senate and the National Assembly, with the matter currently undergoing mediation.
The Senate has demanded a higher allocation of Sh415 billion, arguing that counties are facing increased service delivery responsibilities, including in health, early childhood education, agriculture, and climate resilience.
The National Assembly, on the other hand, supports the Treasury’s figure of Sh405 billion, citing fiscal constraints.
The mediation committee comprising members from both Houses is expected to table its report within the statutory deadline to avoid delays in disbursing county funds.
In addition to the equitable share, the Treasury has allocated Sh9.95 billion in conditional allocations from the national government’s share, and Sh56.91 billion in conditional grants from development partners.
The total shareable revenue is projected at Sh2.835 trillion, with the national government taking Sh2.419 trillion.
Counties will receive varying allocations under the equitable share. Nairobi will receive the highest amount at Sh21.1 billion, followed by Nakuru at Sh14.3 billion, Turkana at Sh13.8 billion, Kakamega at Sh13.6 billion, and Kiambu at Sh12.9 billion.
Mandera, Kilifi, and Kitui are also among the top recipients, reflecting their population sizes and service demands.
Smaller counties such as Lamu, Tharaka Nithi, and Isiolo will receive lower amounts in line with their demographic and fiscal indicators.
