The Health, Wellness and Nutrition sector has been allocated the highest amount of KSh 11.75 billion in the KSh 48.98 billion budget for Nairobi City County Government for the financial year 2025/26.
Finance and Economic Planning County Executive Committee Member Charles Kerich presented the budget estimates on Friday, June 27.
The allocation represents 24% of the overall budget and is an improvement in comparison to the current FY 2024-25 allocation of KSh 9 billion.
The health sector has struggled with stalled projects within the level four hospitals, despite billions of allocations for the past 12 years.
In the estimates,KSh 34.72 billion will cater for the recurrent expenditure while KSh 14.26 billion has been set aside for development.
The allocation presents an increase of KSh 5.1 billion compared to the revised budget for FY 2024-25.
The allocation undermines the strategy paper 2025 that had set the ceilings at KSh 46.5 billion but the county is counting on projected Own Source Revenue collections of KSh 23.5billion to fund its programs.
The governor has also given priority to the Mobility and Works sector with an allocation of KSh 3.5 billion for improvement and maintenance of critical road infrastructure.
The budget which has received unanimous support from MCAs has an allocation of KSh 2.155 billion for the Ward Development Fund(WDF). Every ward will get KSh 25.4 million with this poised to boost key projects proposed by the legislators.
The education sector has seen an allocation for Secondary and Primary Education Scholarships be retained at Kshs. 269.9million and Kshs. 595million respectively.
The Environment and Water sector has a Kshs. 4.5 billion which is a similar amount allocated to the finance department.
The County Assembly has an allocation of Kshs.3.6 billion with Kshs. 2.15 billion set to cater for the recurrent expenditure while Kshs.1.46 billion will be used to fund capital projects at the assembly.
The county expects to collect KSh 23 bbillion from Own Source Revenue Streams with Kshs. 23.5 billion expected from the equitable revenue share and KSh 590 million as grants.
The County Treasury further expects to inject KSh 1 billion to the revenue basket as projected cash balances carried forward from the current financial year.
The plans to boost its revenue collection through green financing and alternative funding approaches.
Finance, Budget and Appropriations Committee chairperson Wilfred Odalo raised concerns over the ambitious Kshs.23.5 billion target for Own Source Revenue.
The Division of Revenue Bill approved by the National Assembly allocated KSh 405 billion to all County Governments, which could guarantee Nairobi about Kshs.21.06 billion equivalent to 5.25% of the total equitable share.
The Commission on Revenue Allocation (CRA) proposed that counties receive KSh 417 billion while the Council of Governors suggested Kshs.536 billion.
For Nairobi to receive the amount quoted in the estimates, the equitable share would need to be KSh 450 billion
