Senator Edwin Sifuna voiced concerns in the Senate on Tuesday, June 16, 2026, during debate on the County Allocation of Revenue Bill, stating that Nairobi County will receive less funding under the new revenue-sharing framework compared to the previous formula.

“The total amount that was to come to Nairobi County was Ksh23.5 billion if we had gone with the old County Allocation of Revenue Act. Now it is Ksh22.1 billion,” Sifuna stated.

“That is a deficit of 1.4 billion that would have come to Nairobi to help the people of Nairobi. Whereas we support this, please understand our pain on behalf of the people that we represent.”

He said urban counties continue to face high expenditure pressures due to service delivery obligations under devolved governance structures. He added that Nairobi’s allocation is being assessed within the broader framework of equitable sharing and fiscal responsibility among counties.

The Senate debate forms part of the ongoing consideration of the mediated revenue-sharing formula for the 2026/27 financial year.

Nairobi allocation figures

His remarks came as Senate considered mediated County Allocation of Revenue Bill for the 2026/27 financial year, which distributes the Ksh428 billion equitable share approved in Division of Revenue Bill.

President William Ruto assented to the latter on Monday, June 15, 2026, increasing county funding by Ksh13 billion from Ksh415 billion allocated in 2025/26. This represents about 21 per cent of the most recent audited national revenue, surpassing the constitutional minimum of 15 per cent.

The allocation process was concluded after mediation between the two houses of Parliament following initial disagreements on the distribution framework.

The final agreement determines how the equitable share is distributed to counties based on constitutional criteria and approved revenue benchmarks. It follows consultations between Senate, National Assembly and county representatives.

County funding framework and mediation

Sifuna noted that Nairobi faces high service delivery demands amid population pressures, infrastructure needs, and devolved functions such as health, roads, and waste management. The mediation between the National Assembly and Senate settled on Ksh428 billion after initial proposals varied.

The Council of Governors had pushed for Ksh534 billion, citing transferred national responsibilities that strain county budgets. While the final figure marks a modest increase nationally, shifts in the allocation formula based on population, poverty indices, land area, and fiscal responsibility have affected distribution across counties.

The bill also includes Ksh10.25 billion for the Equalisation Fund to address regional disparities. As counties prepare budgets, calls for transparency and accountability continue amid concerns over implementation efficiency and resource management.

The Equalisation Fund allocation is included in the broader division of revenue framework aimed at reducing regional disparities across counties.

Implementation of the framework will be monitored through oversight mechanisms involving national and county government institutions. Budget preparation by counties will proceed ahead of the 2026/27 financial cycle under the new allocation structure.

The framework also includes Ksh10.25 billion allocated to the Equalisation Fund, aimed at addressing regional development disparities.