The National Treasury has outlined plans to distribute Sh420 billion to Kenya’s counties in the 2026-27 financial year, offering a modest increase for most regions.
The draft Budget Policy Statement (BPS) presented by Treasury Cabinet Secretary John Mbadi indicates that the funds will be allocated using the Fourth Basis formula, approved by Parliament under Article 217 of the Constitution.
“The National Treasury proposes to allocate county governments an equitable share of Sh420 billion from the nationally raised shareable revenue, to be distributed among counties using the Fourth Basis formula,” Mbadi said.
Each of the 47 counties will see a marginal rise from this year’s allocations, though Parliament will review the figures, with the Senate and National Assembly expected to scrutinise and adjust the proposal before final approval.
Under the draft, Nairobi, Kiambu, Nakuru, Turkana, and Kakamega are set to receive the largest portions, while Lamu, Elgeyo Marakwet, Isiolo, Tharaka Nithi, and Taita Taveta will get the least.
Nairobi County, led by Governor Johnson Sakaja, is slated to get Sh21.68 billion, up from Sh21.41 billion this year. Nakuru’s allocation will rise from Sh14.45 billion to Sh14.62 billion, Turkana from Sh13.89 billion to Sh14.03 billion, while Kakamega and Kiambu will receive Sh13.82 billion and Sh13.24 billion, up from Sh13.67 billion and Sh13.07 billion, respectively.
Other counties recording increases include Mandera at Sh12.38 billion from Sh12.26 billion, Kilifi at Sh12.95 billion from Sh12.81 billion, Kitui at Sh11.63 billion from Sh11.50 billion, Bungoma at Sh11.98 billion from Sh11.83 billion, and Wajir at Sh10.63 billion from Sh10.50 billion.
Meru will get Sh10.68 billion from Sh10.55 billion, Machakos Sh10.30 billion from Sh10.17 billion, Kisii Sh9.93 billion from Sh9.81 billion, and Narok Sh9.88 billion from Sh9.77 billion. Kwale will receive Sh9.17 billion from Sh9.07 billion, Uasin Gishu Sh9.08 billion from Sh8.97 billion, and Makueni Sh9.07 billion from Sh8.97 billion.
Other beneficiaries include Kisumu with Sh9 billion from Sh8.90 billion, Migori Sh8.99 billion from Sh8.88 billion, Mombasa Sh8.48 billion from Sh8.38 billion, and Marsabit Sh8.21 billion from Sh8.10 billion.
At the lower end, Lamu is proposed to get Sh3.25 billion, down from Sh3.90 billion this year. Elgeyo Marakwet rises to Sh5.58 billion from Sh4.82 billion, Isiolo Sh5.70 billion from Sh5.63 billion, Tharaka Nithi Sh5.12 billion, and Taita Taveta Sh5.83 billion. Kirinyaga will receive Sh6.22 billion, Laikipia Sh6.17 billion, Nyamira Sh6.14 billion, and Nyandarua Sh6.73 billion.
The draft also highlights an affirmative allocation to support historically marginalised areas.
Twelve counties; Lamu, Elgeyo Marakwet, Tharaka Nithi, Taita Taveta, Isiolo, Embu, Nyamira, Kirinyaga, Laikipia, Nyandarua, Samburu, and Vihiga — are set to share Sh4.46 billion under this provision, aimed at boosting development in these regions.
