The Commission on Revenue Allocation (CRA)has proposed a resource allocation of Ksh458.94 billion to county governments in the 2026/2027 budget allocation.

Appearing before the Committee on Budget and Appropriations on Tuesday, February 24, 2026, the Mary Wanyonyi Chebukati-led committee explained that the Commission’s proposed county allocation is based on the Financial Year (FY) 2026/27 revenue projection of Ksh2.9 trillion from a target of Ksh2.7 trillion in the 2025/26 Financial Year.

According to CRA, an increase of Ksh5 billion to the county government allocation, against the proposed Ksh152.5 billion to the national government, is unfair, raising concerns on balance in resource distribution.

Mary also added that the Commission had considered the service delivery that the County Governments are expected to undertake .

CRA recommended that the national government enter into intergovernmental agreements when devolved functions are budgeted at the national level to ensure that projects are completed and operationalised.

The Committee also reviewed submissions from the Office of the Auditor General (OAG), which expressed concern over the proposed BPS allocation to the OAG of Ksh8.776 billion, stating that the Office is facing a budget shortfall of Ksh2.311 billion.

She noted that the funding deficit would limit the Office’s ability to conduct all planned audits within its audit universe of more than 12,000 entities and that the shortfall is also expected to affect the auditing of newly incorporated institutions within its mandate, including Level 2 and 3 hospitals and Technical and Vocational Education and Training (TVET) institutions.

The Committee is set to scrutinise the submissions from both the CRA and OAG and prepare a report for consideration by the House and to guide the debate during the final approval of the fiscal framework.