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Budget Committee approves Sh415 billion county allocation for FY 2025/26
A total of Sh8.35 billion—about 30 per cent of the Sh27.6 billion in new revenue—has been allocated to 12 counties in the current financial year, reflecting efforts to address disparities and enhance equitable development across regions
The National Assembly Budget and Appropriations Committee has approved the allocation of Sh415 billion to the 47 county governments for the Financial Year 2025/26.
This is after the committee officially adopted the County Allocation of Revenue Bill, 2025 (Senate Bills No. 9 of 2025), which sets the equitable share of revenue to be disbursed to the counties following conclusion of the mediation process between the National Assembly and the Senate.
The horizontal sharing of the Sh415 billion is based on the Fourth Revenue Sharing Basis, which Parliament approved on June 24 as provided under Article 217 of the Constitution. The formula will guide allocations for five years from FY 2025/26 to FY 2029/30.
Key components include baseline allocation of Sh387.425 billion (FY 2024/25 allocation); affirmative allocation of Sh4.46 billion equally shared among 12 marginalised counties and additional equitable share of Sh23.115 billion, distributed based on the new formula, which uses the following weighted parameters: Population Index – 45 per cent; Basic Share Index – 35 per cent; Poverty Index – 12 per cent; and Geographical Size Index – 8 per cent.
Counties with the highest percentage increase in allocation are Lamu (18.53 per cent), Tharaka-Nithi (14.97 per cent), Isiolo (14.38 per cent), Elgeyo-Marakwet (14.26 per cent), Taita-Taveta (13.70 per cent), Vihiga (13.52 per cent), Laikipia (13.31 per cent), Nyamira (13.31 per cent), Embu (13.18 per cent), Kirinyaga (12.89 per cent), Samburu (12.69 per cent) and Nyandarua (12.23 per cent).
A total of Sh8.35 billion—about 30 per cent of the Sh27.6 billion in new revenue—has been allocated to the 12 counties in the current financial year, reflecting efforts to address disparities and enhance equitable development across regions.
