Counties Secure Sh 415 Billion Equitable Share

After intense, four-day negotiations, Members of Parliament and Senators have reached a consensus on the equitable share of revenue for county governments for the 2025/26 financial year. 

Counties are set to receive a significant allocation of Sh 415 billion, a substantial increase that promises enhanced service delivery at the devolved level.

This agreed-upon figure represents a Sh 27.6 billion increase from the Sh 387.4 billion disbursed in the current 2024/25 financial year, reflecting a growing commitment to strengthening devolution. 

Crucially, the Sh 415 billion allocation is also Sh 10 billion more than the National Treasury’s initial proposal of Sh 405.1 billion, a testament to the robust advocacy by county representatives.

The breakthrough came from a mediation committee, a joint team of members from both the National Assembly and the Senate, tasked with resolving the deadlock over the Division of Revenue Bill. 

Their successful negotiations underscore the critical role of inter-parliamentary dialogue in ensuring a fair and adequate distribution of national resources.

Governors and county assemblies have consistently pushed for increased allocations, arguing that enhanced funding is vital for them to effectively carry out their devolved functions, which include healthcare, agriculture, local infrastructure, and early childhood development. 

his significant boost in the equitable share is expected to alleviate some of the financial pressures faced by counties and enable them to implement more development projects and improve public services.

While the specific breakdown of how the Sh 415 billion will be distributed among the 47 counties will be guided by the approved revenue sharing formula, the overall increase is a positive step towards bolstering the fiscal capacity of devolved units.

 This consensus paves the way for the smooth passage of the Division of Revenue Bill, allowing counties to finalize their budgets and operationalize their plans for the upcoming financial year.

The increased allocation is anticipated to have a tangible impact on the ground, potentially leading to more visible development projects, improved access to essential services, and a greater sense of autonomy for county governments in addressing the unique needs of their populations across Kenya.