Counties are projected to receive a total of Sh474.9 billion in the 2025/2026 financial year, according to the proposed national budget currently under consideration. The allocation includes Sh405.1 billion in equitable share and Sh69.8 billion in conditional allocations from both the National Government and development partners.
This marks a modest increase from the current fiscal year, where devolved units received Sh400.1 billion in equitable share, Sh8.76 billion in conditional allocations from the National Government, and Sh35.66 billion from development partners. The 1.25 percent rise in equitable share is designed to support counties in delivering essential services such as healthcare, education, and road maintenance.
While the budget signals a notable increase in conditional funding—indicating a shift towards more targeted financial support—the Council of Governors (CoG) has raised concerns over the adequacy of the equitable share.
The CoG argues that the proposed Sh405.1 billion falls short of the growing financial demands of counties.Under the proposed allocation, Nairobi County will receive the highest share at Sh21.2 billion, while Lamu County will receive the least at Sh3.41 billion, reflecting disparities based on factors such as population, poverty levels, and land area.
Despite the funding increase, county governments continue to grapple with delayed disbursements and rising costs in service delivery. Stakeholders are urging Parliament to review the proposed allocations to ensure counties are adequately funded to meet their devolved responsibilities.
As the budget undergoes parliamentary scrutiny, the final allocations may be subject to changes before implementation in July 2025.