Controller of Budget Margaret Nyakang’o. /FILEController of Budget Margaret Nyakang’o has sanctioned the release of Sh33.2 billion to county governments for the month of August, in a significant stride towards fiscal decentralisation.
The allocation follows the adoption of the County Allocation of Revenue Bill, 2025, by the Budget and Appropriations Committee on August 6.
The legislation sets the equitable share of national revenue to county governments at Sh415 billion for the 2025–26 financial year.
The breakthrough came after a successful mediation process between the National Assembly and the Senate on the Division of Revenue Bill, 2025, after the two houses differed on how much revenue should be released to the 47 devolved units.
The newly approved bill assigns the distribution of monies on two critical schedules.
Schedule I delineates the individual allocations to each county government, while Schedule II establishes ceilings on recurrent expenditure for both county assemblies and county executives.
The universal sharing of the Sh415 billion is steered by the Fourth Revenue Sharing Basis, a formula adopted by Parliament on June 24, 2025, under Article 217 of the constitution.
This formula, which will guide allocations for five financial years from 2025–26 to 2029–30, incorporates a blend of indices.
Population accounts for 45 per cent, basic share at 35 per cent, poverty at 12 per cent, and geographical Size at 8 per cent.
Among the counties, Nairobi emerged as the top recipient with an allocation of Sh1,713,370,272, reflecting its vast population and economic significance.
Nakuru followed a distant second with Sh1,156,411,813, underscoring its growing role as a commercial and agricultural hub.
Turkana was allocated Sh1,111,406,190 followed closely by Kakamega which secured Sh1,093,987,885, a testament to their demographic weight and development needs.
Kiambu was allocated Sh1,045,745,439, aligning with its proximity to the capital and infrastructural demands, while Kilifi wrapped up the top six with Sh1,025,071,742, highlighting its strategic coastal position and expanding public service requirements.
All the other 41 counties had allocations below a billion shillings, including the 12 counties of Lamu, Tharaka Nithi, Isiolo, Elgeyo Marakwet, Vihiga, Taita Taveta, Laikipia, Embu, Kirinyaga, Nyamira, Samburu and Nyandarua which had the highest increase in allocation based on the weighted indices and the guiding parameters of the Fourth Revenue Sharing Basis.
The financial injection is expected to bolster service delivery, enhance development projects, and reinforce the autonomy of county governments in line with the spirit of devolution.
As counties gear up to implement their budgets, the equitable distribution of resources remains a cornerstone of Kenya’s journey towards inclusive growth and regional empowerment.
