How counties will share Sh420 billion

Details have emerged on how counties will share the Sh420 billion proposed by the National Treasury for allocation to devolved units in the 2026-27 financial year.

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According to the draft Budget Policy Statement (BPS) tabled by Treasury Cabinet Secretary John Mbadi, the funds will be shared using the Fourth Basis formula approved by Parliament under Article 217 of the constitution.

“The National Treasury proposes to allocate county governments an equitable share of Sh420 billion from the nationally raised shareable revenue, to be distributed among counties using the Fourth Basis formula,” Mbadi said.

Each of the 47 counties receives a marginal increase in their allocation from the current fiscal year.

However, the figure is subject to review by Parliament, with both the Senate and the National Assembly expected to scrutinise the proposal and make adjustments where necessary before final approval.

Under the proposal, Nairobi, Kiambu, Nakuru, Turkana and Kakamega will receive the largest shares, while Lamu, Elgeyo Marakwet, Isiolo, Tharaka Nithi and Taita Taveta will get the least.

Nairobi County, under Governor Johnson Sakaja, is set to receive Sh21.68 billion, up from Sh21.41 billion in the current financial year.

Nakuru’s allocation has increased from Sh14.45 billion to Sh14.62 billion, while Turkana will receive Sh14.03 billion from Sh13.89 billion.

Kakamega and Kiambu counties will each get Sh13.82 billion and Sh13.24 billion, up from Sh13.67 billion and Sh13.07 billion, respectively.

Other counties recording notable increases include Mandera, which will receive Sh12.38 billion from Sh12.26 billion, and Kilifi, whose allocation has risen to Sh12.95 billion from Sh12.81 billion.

Kitui is set to get Sh11.63 billion from Sh11.50 billion, Bungoma Sh11.98 billion from Sh11.83 billion, Wajir Sh10.63 billion from Sh10.50 billion, Meru Sh10.68 billion from Sh10.55 billion and Machakos Sh10.30 billion from Sh10.17 billion.

Kisii’s allocation has increased to Sh9.93 billion from Sh9.81 billion, while Narok will receive Sh9.88 billion from Sh9.77 billion.

Kwale is set to get Sh9.17 billion from Sh9.07 billion, Uasin Gishu Sh9.08 billion from Sh8.97 billion, and Makueni Sh9.07 billion from Sh8.97 billion.

Other beneficiaries include Kisumu, which will receive Sh9 billion from Sh8.90 billion, Migori Sh8.99 billion from Sh8.88 billion, Mombasa Sh8.48 billion from Sh8.38 billion, and Marsabit Sh8.21 billion from Sh8.10 billion.

At the lower end, Lamu is proposed to receive Sh3.25 billion, compared to Sh3.90 billion in the current year.

Elgeyo Marakwet’s allocation has risen to Sh5.58 billion from Sh4.82 billion, while Isiolo will receive Sh5.70 billion from Sh5.63 billion. Tharaka Nithi and Taita Taveta are set to get Sh5.12 billion and Sh5.83 billion, respectively.

Kirinyaga will receive Sh6.22 billion, Laikipia Sh6.17 billion, Nyamira Sh6.14 billion, and Nyandarua Sh6.73 billion.

The allocations for 12 counties — including Lamu, Elgeyo Marakwet, Tharaka Nithi, Taita Taveta, Isiolo, Embu, Nyamira, Kirinyaga, Laikipia, Nyandarua, Samburu and Vihiga — include an affirmative allocation under the revenue-sharing formula.

These counties have been collectively allocated Sh4.46 billion to support development in historically marginalised areas.

INSTANT ANALYSIS

The allocation of the equitable share of revenue to county governments shall be in accordance with the fourth determination of the basis of division of revenue among counties, approved by Parliament pursuant to Article 217(7) of the constitution,” the Bill emphasises. The baseline allocation has been set at Sh387.42 billion, which was the equitable share for counties in FY 2024-25. This means no county will receive less than it got in the previous financial year.