Counties get Sh93b additional revenue after MPs pass Bill

County governments will share out Sh93.53 billion in the current 2025/2026 financial year after MPs approved the County Government Additional Allocation Bill.

The Bill, which was first given the nod at the Senate before being transmitted to the National Assembly, seeks to authorise the transfer of both conditional and unconditional additional allocations to county governments for the current financial year.

The billions include Sh2.95 billion from Court Fines and 20 percent of Mineral Royalties, Sh10.04 billion from the National Government’s Share of Revenue and Sh23.63 billion from the Road Maintenance Fuel Levy Fund. There is also another Sh56.9 billion from loans and grants from development partners.   

Counties will now each get about Sh1.98 million towards the 0.5 the Housing Levy Fund whereas the allocations for Community Health Promoters (CHPs) Programme will vary depending on counties.

The Bill also stipulates that the total Conditional CHP program amounts to Sh3.2 billion, Supplement for Construction of County Headquarters Sh449 million, County Aggregation and Industrial Parks (CAIPs) Program Sh4.4 billion, Allocations for 0.5 per cent of Housing Levy Fund to the County Rural and Urban Affordable Housing Committees Sh93.4 million.

Amendments approved by the House include adjustments on allocations for the construction of county headquarters which was done to reflect the actual transfers, bringing the figure to Sh449 million after deducting Sh5 million meant for operational expenses. The House also directed that County Aggregation of Industrial Parks (CAIPs), be given to counties with pending balances from the national Government projects.

Budget and Appropriation Committee chair Samuel Atandi said the amendments were necessary to align the Bill with current fiscal realities and to ensure that county governments receive resources in a more predictable and accountable manner.

“Honorable chair, we are we want to align the allocations with what is captured in the 2025/ 2026  estimates what is captured in the estimates for example under county headquarters allocation what is what is captured t be sent to counties is 449 million as opposed to 454 million which is in the bill. Then secondly under CAIPS we have done some realignment. Honorable chair because we have realized that the bill is giving allocations to counties that have not started any project under CAIPs and leaving out counties that have made progress with their kites,” he said.

Further, the monies to be distributed Baringo, Embu, Garissa, Isiolo, Kajiado, Kakamega, Kiambu, Kilifi, Kirinyaga, Kisii, Kitui, Kwale, Machakos, Makueni, Mandera, Marsabit will get Sh2.9 billion from the 20 per cent share of mineral royalties for the financial year 2025/2026.