The National Assembly has passed the County Governments Additional Allocations (No. 2) Bill (Senate Bill No. 8 of 2025), paving the way for counties to access billions of shillings in conditional allocations from both the national government and development partners for the Financial Year 2025/26.
The Bill, sponsored by the Senate and processed by the National Assembly’s Budget and Appropriations Committee, seeks to strengthen devolution by providing counties with targeted resources to support priority programmes in healthcare, housing, industrialization, and infrastructure.
In adopting amendments to the Bill, Members approved a new Second Schedule that outlines conditional additional allocations from the national government’s share of revenue.
Counties will collectively receive Kshs. 9.98 billion, earmarked for: 𝘚𝘦𝘵𝘵𝘭𝘦𝘮𝘦𝘯𝘵 𝘰𝘧 𝘥𝘰𝘤𝘵𝘰𝘳𝘴’ 𝘴𝘢𝘭𝘢𝘳𝘺 𝘢𝘳𝘳𝘦𝘢𝘳𝘴, 𝘊𝘰𝘮𝘮𝘶𝘯𝘪𝘵𝘺 𝘏𝘦𝘢𝘭𝘵𝘩 𝘗𝘳𝘰𝘮𝘰𝘵𝘦𝘳𝘴 (𝘊𝘏𝘗𝘴) 𝘗𝘳𝘰𝘨𝘳𝘢𝘮𝘮𝘦, 𝘊𝘰𝘯𝘴𝘵𝘳𝘶𝘤𝘵𝘪𝘰𝘯 𝘰𝘧 𝘊𝘰𝘶𝘯𝘵𝘺 𝘏𝘦𝘢𝘥𝘲𝘶𝘢𝘳𝘵𝘦𝘳𝘴, 𝘊𝘰𝘶𝘯𝘵𝘺 𝘈𝘨𝘨𝘳𝘦𝘨𝘢𝘵𝘪𝘰𝘯 𝘢𝘯𝘥 𝘐𝘯𝘥𝘶𝘴𝘵𝘳𝘪𝘢𝘭 𝘗𝘢𝘳𝘬𝘴 (𝘊𝘈𝘐𝘗𝘴) 𝘢𝘯𝘥 𝘈𝘭𝘭𝘰𝘤𝘢𝘵𝘪𝘰𝘯𝘴 𝘧𝘳𝘰𝘮 0.5% 𝘰𝘧 𝘵𝘩𝘦 𝘏𝘰𝘶𝘴𝘪𝘯𝘨 𝘓𝘦𝘷𝘺 𝘍𝘶𝘯𝘥 𝘵𝘰 𝘊𝘰𝘶𝘯𝘵𝘺 𝘙𝘶𝘳𝘢𝘭 𝘢𝘯𝘥 𝘜𝘳𝘣𝘢𝘯 𝘈𝘧𝘧𝘰𝘳𝘥𝘢𝘣𝘭𝘦 𝘏𝘰𝘶𝘴𝘪𝘯𝘨 𝘊𝘰𝘮𝘮𝘪𝘵𝘵𝘦𝘦𝘴
For instance, counties such as Kajiado, Kericho, Kitui, Laikipia, Marsabit, Nyeri, and Vihiga will each benefit from an additional Kshs. 250 million for the CAIPs programme, while Isiolo, Lamu, Nyandarua, Tana River, and Tharaka Nithi will access resources for construction of new county headquarters.
The House also adopted a new Fourth Schedule providing for conditional allocations to county governments from loans and grants by development partners, amounting to Kshs. 57.7 billion.
These funds will support key programmes including the Food Systems Resilience Project, the Drought Resilience Programme in Northern Kenya, the Kenya Devolution Support Programme (KDSP II), Kenya Urban Support Project (KUSP II), the Kenya Water, Sanitation and Hygiene (KWASH) Programme, and the Kenya Informal Settlements Improvement Project (KISIP II).
Chairperson of the Budget and Appropriations Committee, Hon. Ndindi Nyoro, emphasized that the passage of the Bill demonstrates Parliament’s commitment to devolution.
“This legislation ensures that counties are not only adequately resourced but are also empowered to deliver programmes that directly touch on the lives of ordinary citizens, from healthcare to affordable housing and climate resilience,” he said.The allocations are expected to strengthen collaboration between the two levels of government and development partners, ensuring that counties have the fiscal space to implement development programmes, respond to emerging challenges, and uplift livelihoods.
The Bill will now proceed for assent by the President.
