Counties in Kenya have been urged to focus more on development projects than on staff salaries and administrative costs, with a call to allocate Sh130 billion for roads, water, and agriculture in the 2026/27 financial year.
The Parliamentary Budget Office has advised Parliament and the Commission on Revenue Allocation to ensure that these funds are protected to guarantee meaningful progress in key sectors that affect citizens’ daily lives.
The move is intended to steer county spending toward initiatives that can stimulate growth and support the country’s broader economic transformation agenda.
The PBO’s recommendations outline that Sh50 billion should be directed to roads, Sh40 billion to water projects, and Sh40 billion to agriculture.
The office emphasised that creating ring-fenced funds for these areas will prevent counties from diverting money to salaries and other administrative expenses, which currently dominate budgets at the expense of development.
“From the equitable allocation, the CRA and Parliament may consider providing a minimum allocation for agriculture, roads, water, irrigation and county emergency funds. This will ensure counties realise substantial development and also support the national government interventions for economic transformation,” the office said in its report on budget options for 2026/27.
The proposed Sh130 billion represents 31 per cent of the Sh420 billion equitable revenue share recommended by the Treasury in the Budget Review and Outlook Paper.
Currently, counties allocate significantly lower amounts to these priority areas. In the 2024/25 financial year, road spending stood at Sh43 billion, with some counties dedicating as little as 1.6 per cent of their budgets, despite deteriorating infrastructure.
By June 2024, only 3,607 kilometres of county roads were paved, leaving over 117,000 kilometres in poor condition, limiting access to markets, towns, and farms across the country.
The office criticised governors for neglecting road maintenance and urged that at least Sh50 billion be committed in the next fiscal year. Similarly, agriculture remains underfunded, with counties providing only Sh31.6 billion this year.
Turkana led allocations with Sh1.6 billion, followed by Marsabit at Sh1.3 billion, Kiambu at Sh1.2 billion, and Narok at Sh1.03 billion.
“This is equivalent to 5.2 per cent of their total budget, which is below the recommended 10 per cent in line with the Comprehensive Africa Agriculture Development Program,” the PBO noted. Weak extension services and ineffective fertiliser programmes have left many small-scale farmers without support, highlighting the need for increased investment.
Water projects also require more funding. Counties currently spend Sh32 billion, with some allocating as little as 1.1 per cent of their budgets. The PBO recommends raising this to Sh40 billion in 2026/27, warning that continued neglect could undermine development gains.
The office estimates that safeguarding resources for roads, agriculture, and water could add Sh19 billion to GDP, equivalent to a 0.1 per cent increase.
Beyond development sectors, the PBO called for a mandatory Sh7 billion for county emergency funds. While many counties have set up such funds, some withdraw money soon after depositing it, “raising concerns that the fund is an instrument to facilitate expenditure,” the office noted.
The advisory sends a clear message to governors and county assemblies: prioritise infrastructure, agriculture, and water, while ensuring emergency preparedness, to drive long-term economic growth and improved public services.
