Senate approves Ksh16.8B Equalisation Fund Bill to boost services in 34 counties
By Kenneth Mwenda, May 12, 2026The Senate has passed the Equalisation Fund Appropriation Bill, 2025, clearing the way for the release of Ksh16.8 billion to support basic services in marginalised areas across Kenya.
Lawmakers approved the Bill on Tuesday, May 12, 2026. The funds will go towards water projects, roads, health facilities and electricity in 1,424 sub-locations spread across 34 counties.
The Bill, known as National Assembly Bill No. 21 of 2025, authorises spending from the Equalisation Fund for the financial year ending 30 June 2026. It includes Ksh6.2 billion for pending obligations from the previous financial year and Ksh10.6 billion for new projects.
The Senate Standing Committee on Finance and Budget, chaired by Mandera Senator Ali Roba, had earlier reviewed the Bill and recommended its approval without amendments.
“The Senate Standing Committee on Finance and Budget has officially adopted its report on the Equalisation Fund Appropriation Bill, 2025 and resolved to recommend that the Senate approve the Bill without any amendments,” the committee said in its report.
The Equalisation Fund is provided for under Article 204 of the Constitution. It is meant to reduce inequality in access to basic services in areas that have lagged behind in development. The national government sets aside 0.5 per cent of the most recent audited revenue each year for the fund.
This allocation is based on audited revenues from the 2020/21 financial year. The fund also includes additional money to clear long-standing arrears.
Senators raised concerns over delays in disbursement and implementation. Since the fund was created, only Ksh13.4 billion has been released, while arrears have risen to Ksh62.7 billion.
Migori Senator Eddy Oketch said the fund must deliver results on the ground.
“The Equalisation Fund was meant to bring services in marginalised areas closer to the rest of the country, but implementation has been slow,” he said during the debate.
Stronger accountability framework
The Bill also introduces strict financial controls. It bars counties from mixing the funds with their normal revenue. Instead, money will go into special accounts at the Central Bank of Kenya. The Controller of Budget must approve all withdrawals, while the Equalisation Fund Advisory Board will guide project implementation.
Lawmakers allocated Ksh504 million for administration costs, within the legal cap of three per cent of the total allocation.
Once President William Ruto signs the Bill into law, the funds will be released for projects. The Commission on Revenue Allocation is also finalising the Third Marginalisation Policy, which will guide future allocations from the 2026/27 financial year.
Senators from marginalised regions welcomed the move but urged faster implementation.