Counties will receive Sh29.28 billion more as equitable revenue share in the next financial year if a recommendation for revenue sharing between the national government and devolved units by the Commission on Revenue Allocation (CRA) is adopted.
The development comes after the Ms Mary Chebukati-led commission recommended that the National Treasury allocate the 47 counties Sh457.28 billion as equitable revenue share in the financial year ending June 30, 2028.
Currently, the devolved units received Sh428 billion from the Exchequer as equitable revenue in the current financial year ending June 30, 2027.
Speaking to the media on Thursday, Ms Chebukati said the recommendation is based on projected shareable revenue of Sh3.24 trillion during the period under review.
Consequently, the Commission proposes that the national government be allocated Sh2.78 trillion while counties get Sh457.28 billion as equitable share and another Sh10.25 billion as equalisation fund.
She said the increment provides for universal health coverage (UHC) staff remuneration, implementation of the fourth cycle of salaries and remuneration commission benefits for State and public officers, provision for the nurses and midwives collective bargaining agreement and a three percent growth in county service provision.
“The recommendation seeks to balance the financing needs of the two levels of government, fiscal sustainability, public debt obligations and the need to sustain service delivery to Kenyans,” she added.
“The recommended county allocation is equivalent to 22.3 percent of the most recent audited and approved nationally raised revenue, well above the constitutional minimum of 15 percent as per Article 203(2) of the Constitution,” said Ms Chebukati.
Commission on Revenue Allocation chairperson Mary Wanyonyi Chebukati.
Photo credit: File | Nation Media Group
The recommendations come at a time when the Council of Governors (CoG) is lamenting delays in disbursement of Sh8.9 billion meant to pay UHC staff who signed fresh contracts with the devolved units for absorption on a permanent and pensionable basis.
CoG Chairperson Muthomi Njuki said counties have been forced to look for funds from other sources to pay the staff.
The Tharaka Nithi governor pointed out that it has been four months since counties started paying the UHC staff, yet no resources have been made available to them as was agreed.
The National government, through the Ministry of Health, and counties had agreed that the UHC staff would be absorbed by counties and the attendant resources would follow through the county governments' additional allocations disbursement but that has not happened.
“The money that should have been appropriated to the counties sits at the National Treasury because the necessary protocols needed to release the funds have not been actioned at the Senate,” said Mr Njuki.
Consequently, he called for an immediate release of the funds, saying further delays in disbursing the resources to counties will negatively affect service delivery.
“The national government should keep its word by releasing funds for all devolved functions. Such funds are lying in line ministries while the main work is done at the county level,” he said.
At the same time, county assemblies will now be able to spend at least Sh50.36 billion on recurrent activities after the CRA recommended to the Senate to increase recurrent expenditure ceilings for county assemblies in the fiscal year ending June 30, 2028.
According to the proposal, the current proposal reflects an increase of Sh11.17 billion in respect to the current ceiling of Sh39.19 billion for the county assemblies – which were recently granted financial autonomy.
President William Ruto, Governor Gladys Wanga, (left) Council of Governors Chair Ahmed Abdullahi (left), Vice Chair Mutahi Kahiga (2nd right), Senate Speaker Amason Kingi (2nd left), Governor Joshua Sang (extreme left) and PS Devolution Michael Lenasalon (extreme right) unveil the Council of Governors (COG) Devolution Institute Manual during the opening of the Devolution Conference, 2025 at Homabay National School, Homabay County
Photo credit: Photo | PCS
The increase will cater for MCA personnel emoluments at Sh3.54 billion, operations and maintenance at Sh1.74 billion, motor vehicle reimbursement at Sh4.81 billion, induction and training at Sh474 million and a new staffing model at Sh597 million.
For county executive, the recurrent expenditure ceiling has been pegged at Sh25.85 billion, representing an increase of only Sh602 million.
The increase will go towards paying Bungoma County village administrators and councils, accounting for Sh281 million, operations and maintenance at Sh120 million and another Sh200 million for induction and training.
“The ceilings are intended to support fiscal discipline and ensure that county institutions operate effectively within available resources,” said the CRA boss.
The recommendations will now be submitted to the relevant constitutional offices for consideration through the statutory budget-making process.
