President William Ruto has directed the National Treasury to consider recommendations on the transfer of Sh65.9 billion to county governments to finance functions devolved to the counties.
Ruto said adequate funding was critical to the success of devolution, warning that counties cannot effectively perform responsibilities without the resources required to execute them.
Speaking during the 13th National and County Governments Coordinating Summit at State House, Nairobi, on Tuesday, Ruto said the recommendations developed by the Intergovernmental Relations Technical Committee and the Commission on Revenue Allocation would be submitted to the Treasury for consideration in the 2027/28 financial year.
“Whenever a function is transferred, the resources necessary to perform it must follow,” Ruto said. “Devolution cannot succeed when functions move but resources remain behind; when responsibilities are assigned without capacity; or when expectations are created without the means to meet them.”
The President said the funding recommendations followed verification of the previously identified interim allocation of Sh65.9 billion.
His remarks come as the two levels of government continue efforts to clarify responsibilities under the Fourth Schedule of the Constitution.
Ruto welcomed the completion of the delineation, unbundling and gazettement of several devolved functions, saying the move would reduce duplication and improve accountability.
The functions include electricity and gas reticulation and energy regulation, sporting activities and facilities, fisheries, and soil and water conservation.
He directed the Intergovernmental Relations Technical Committee to proceed with the unbundling and delineation of functions under Part One of the Fourth Schedule.
Ruto also linked increased funding to greater accountability, directing the National Treasury to work with the committee to provide resources required to begin evaluating the performance of the National and County governments.
“What is not measured cannot be improved; what is not evaluated cannot be strengthened; and what is not accounted for cannot inspire public confidence,” he said.
The President said counties had received trillions of shillings since the start of devolution but stressed that success should not be measured by the amount of money transferred.
“It is about converting every shilling into a service, every allocation into an opportunity and every public investment into a measurable improvement in the lives of citizens,” he said.
For the 2026/27 financial year, county governments have been allocated Sh503.5 billion, comprising Sh428 billion in equitable share and Sh75.5 billion in conditional allocations.
Ruto said the National Government would continue working with counties to strengthen healthcare, agriculture, infrastructure, climate action, digital systems and local economic development.