The Commission on Revenue Allocation (CRA) has proposed Ksh.457.28 billion for county governments in the 2027/28 financial year. This represents an increase of Ksh.29.28 billion from the current financial year's allocation of Ksh.428 billion. The proposed allocation is aimed at supporting healthcare, accommodating public-sector pay adjustments, and sustaining service delivery across the 47 devolved units.
The proposed county allocation of Ksh.457.28 billion accounts for 22.3 per cent of the projected shareable revenue pool of Ksh.3.25 trillion. This is above the constitutional minimum of 15 per cent. The CRA attributed the proposed increase to funding for Universal Health Coverage staff salaries, Salaries and Remuneration Commission-approved pay reviews, nursing unions' collective bargaining agreements, and an estimated three per cent growth in the cost of service delivery.
CRA chairperson Mary Wanyonyi Chebukati stated that the recommendation is evidence-based, constitutionally grounded, and responsive to the financing needs of county governments. The objective, according to Chebukati, remains clear: no Kenyan should be left behind. The commission's proposal aims to ensure that county governments have sufficient funds to deliver essential services to their residents.
Alongside the revenue-sharing proposal, the CRA has recommended a Ksh.76.22 billion ceiling on recurrent expenditure by county institutions. This move is aimed at controlling day-to-day spending and ensuring fiscal discipline. The proposed ceilings are intended to support effective operation of county institutions within available resources.
Under the proposed ceilings, county assemblies would receive Ksh.50.367 billion, while county executives would receive Ksh.25.853 billion. The allocations to county assemblies and executives are influenced by various factors, including Members of County Assemblies' vehicle reimbursements, salaries, training, and staffing requirements.
The proposals come amid concerns from the Council of Governors over delays in disbursing Ksh.8.9 billion intended to facilitate the absorption of Universal Health Coverage staff into county governments on permanent and pensionable terms. Council of Governors chairperson and Tharaka Nithi Governor Muthomi Njuki stated that the delays have forced counties to rely on overdrafts.
The CRA's proposals will now be considered by the Senate as preparations for the 2027/28 budget cycle get underway. The Senate's consideration of the proposals will be crucial in determining the final allocation to county governments.
Key points
- The proposed allocation of Ksh.457.28 billion represents a 6.8 per cent increase from the current financial year's allocation.
