2025/26 Budget: National govt allocates Ksh405B to counties

The national government has allocated Ksh405.1 billion for the equitable share to all 47 counties in the 2025/26 financial year to ensure devolution success.
Speaking when he read the 2025/26 budget in Parliament on Thursday, June 12, 2025, National Treasury Cabinet Secretary (CS) John Mbadi stated that the allocation comprises Ksh9.95 billion as additional allocations from the national government’s share of revenue.
“The allocation also comprises Ksh56.91 billion as a conditional allocation from development partners,” he added.
The allocations per county government include Ksh7 billion to Baringo, Ksh7.3 billion to Bomet, and Ksh11.7 billion Bungoma, Ksh7.9 billion Busia, Ksh5 billion Elgeyo Marakwet, Ksh5.6 billion to Ksh5.6 Embu, Ksh8.7 billion Garissa, Ksh8.5 billion Homa Bay, Ksh5.1 billion; Isiolo, Ksh8.7 billion Kajiado, Ksh13.6 billion Kakamega, Ksh7.1 billion; Kericho, Ksh12.9 billion Kiambu, Ksh12.7 billion, and Kilifi, Ksh5.7 billion.
Others include Kirinyaga, Ksh9.7 billion; Kisii, Ksh8.8 billion; and Kisumu, Ksh11.4 billion. Kitui, Ksh9.0 billion; Kwale, Ksh5.6 billion; Laikipia, Ksh3.4 billion Lamu, Ksh10 billion; Machakos, Ksh8.9 billion; Makueni, Ksh12.2 billion Mandera, Ksh7.9 billion Mrasabit, Ksh10.4 billion Mer, Ksh8.8 billion Migori, Ksh8.2 billion Mombasa,
Further, Ksh7.8 billion has been allocated to Muranga, Ksh21.1 billion to Nairobi, Ksh14.3 billion to Nakuru, Ksh7.7 billion to Nandi, Ksh9.6 billion to Narok, Ksh5.6 billion to Nyamira, Ksh6.2 billion to Nyandarua, Ksh6.8 billion to Nyeri, Ksh5.9 billion to Samburu, Ksh7.6 billion to Siaya, Ksh5.3 billion to Taita Taveta, and Ksh7.1 billion to Tana River. Ksh4.6 billion for Tharaka Nithi, Ksh7.9 billion for Trans Nzoia, Ksh13.8 billion for Turkana, Ksh8.9 billion for Uasin Gishu, Ksh5.5 billion for Vihiga, Ksh10.3 billion for Wajir, and Ksh6.9 billion for West Pokot.

County allocation stalemate
This follows a standoff between the National Assembly and the Senate over the equitable share of revenue to counties after Parliament rejected Senate-proposed amendments to the Division of Revenue Bill, 2025.
The Senate had amended the bill to raise the allocation to counties by Ksh60 billion, from Ksh405 billion as earlier approved by the National Assembly, to Ksh465 billion, triggering a mediation process between the two houses —a procedure that is often protracted.
Senate Finance and Budget Committee Vice Chairperson Tabitha Mutinda defended the proposed increase, stating that the burden was informed by non-discretionary expenditures amounting to Ksh34 billion, imposed on counties by national government directives.
These include Ksh4.1 billion for the Housing Levy, Ksh6 billion for National Social Security Fund (NSSF) contributions, Ksh11.8 billion for County Aggregated Industrial Parks, and Ksh3.23 billion for community health promoter payments.
Other obligations include Ksh6.3 billion for annual wage increments under the Integrated Payroll and Personnel Database (IPPD) and Ksh3.5 billion for doctors’ salary increases under the 2017 Collective Bargaining Agreement and return-to-work pacts.
However, the National Assembly dismissed the proposed increase, citing fiscal constraints. Majority Leader Kimani Ichung’wah, while moving the motion to reject the amendments, warned that raising county allocations beyond what was already approved would be fiscally irresponsible.