The Lower Eastern Times Opening The Third Eye
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Controller of Budget Margaret Nyakang’o has approved the release of Sh33.2 billion to county governments for August, marking a key step in strengthening fiscal devolution.
The disbursement follows the adoption of the County Allocation of Revenue Bill, 2025, endorsed by the Budget and Appropriations Committee on August 6. The Bill sets county governments’ equitable share of national revenue at Sh415 billion for the 2025/26 financial year.
This allocation was made possible after mediation between the National Assembly and the Senate resolved disagreements over the Division of Revenue Bill, 2025.
The new law provides a dual framework for funds allocation:
- Schedule I outlines the exact allocations for each county.
- Schedule II sets ceilings on recurrent spending for county assemblies and executives.
Distribution of the Sh415 billion is guided by the Fourth Revenue Sharing Formula, adopted by Parliament on June 24, 2025, under Article 217 of the Constitution. The formula, to apply from 2025/26 to 2029/30, considers:
- Population (45%)
- Basic share (35%)
- Poverty (12%)
- Land area (8%)
Top allocations:
- Nairobi: Sh1.71 billion, reflecting its population and economic role.
- Nakuru: Sh1.15 billion, underlining its status as an agricultural and commercial hub.
- Turkana: Sh1.11 billion.
- Kakamega: Sh1.09 billion.
- Kiambu: Sh1.04 billion.
- Kilifi: Sh1.02 billion.
The remaining 41 counties received under Sh1 billion each. Notably, counties such as Nyandarua, Samburu, Lamu, and Isiolo saw the highest percentage increases due to weighted parameters in the new formula.
The funding is expected to boost service delivery, finance development projects, and strengthen county autonomy, reinforcing the goals of Kenya’s devolved system of governance.
