The Council of Governors (CoG) is pushing for increased county funding, proposing a Ksh534 billion allocation from the National Treasury to boost devolved services.

Appearing before the Senate Committee on Finance and Budget on Tuesday, March 24, 2026, the governors argued that counties have been operating under financial strain, particularly as additional responsibilities continue to be transferred to counties from the national government.

The CoG maintained that the proposed Ksh534 billion is necessary to deliver services and address growing demands at the county level, indicating that they would justify the higher allocation, citing increased obligations and the need to strengthen devolution.

“County Governments have maintained their proposal of Ksh534.96 billion to fully address emerging obligations, including revenue growth adjustment, transition of UHC workers, implementation of outstanding remuneration review cycles, and the phased transfer of additional devolved functions,” CoG chair Ahmed Abdulahi said.

However, the Commission on Revenue Allocation (CRA) has presented a lower figure, recommending Ksh458.9 billion as the equitable share for counties in the 2026/2027 financial year.

According to the CRA, the proposed allocation reflects an increase of Ksh43.94 billion over the current baseline. Of this amount, Ksh34 billion, representing an 8.43 per cent rise, is attributed to revenue growth.

Moreover, the Ksh8.94 billion is earmarked as a transfer from the Ministry of Health budget to cater for Universal Health Coverage (UHC) workers.

“The Commission, therefore, recommends that county governments’ equitable share allocation be increased to Ksh458.9 billion in the financial year 2026/27 to ensure equity in sharing of nationally raised revenue,” CRA chairperson, Mary Chebukati, said.

“The increment translates to an additional allocation of Ksh43.94 billion, of which Ksh34 billion, or rather 8.43 per cent, from the base is an adjustment for revenue growth, and Ksh8.94 billion is a transfer from the Ministry of Health budget for the UHC workers.”

The proposals come even as the Senate invites public views on the allocation of the funds between the county and national governments.

In a public notice on Monday, March 23, 2026, the Senate called on the public to weigh in on the Bill by submitting written representations, which will guide revenue allocation for the 2026/27 financial year.

Of the total estimated budget of Ksh4.7 trillion, Ksh 2.9 trillion has been set aside for distribution between the two levels of government under the proposed framework.

According to the Bill, the national government is set to receive Ksh2.4 trillion. In contrast, the 47 county governments have been allocated Ksh420 billion.