NAIROBI, Kenya – Counties will receive Sh405 billion as equitable share of revenue in the 2025/26 financial year, marking a Sh17.6 billion increase from last year’s allocation, National Treasury Cabinet Secretary John Mbadi announced on Thursday.
This allocation represents 25.79% of the nationally raised revenue in the 2020/21 financial year, based on the most recent audited accounts by the Auditor General.
An additional Sh9.95 billion has been set aside as conditional allocations from the national government’s share, with another Sh56.91 billion earmarked as conditional grants from development partners.
This pushes the total allocation to counties to over Sh471 billion, a significant investment in devolved governance.
The overall national government budget for the 2025/26 financial year stands at Sh2.419 trillion, out of a total shareable revenue of Sh2.835 trillion.
Presenting his first budget statement since taking office in April, CS Mbadi said the budget reflects the government’s renewed focus on economic recovery, fiscal discipline, and citizen engagement.
“I remain mindful of the aspirations and high expectations as I serve in this office,” Mbadi told Parliament. “This budget reaffirms our priority policies and strategies aimed at stimulating economic recovery.”
Economic Performance and Reforms
Mbadi reported that Kenya’s economy remained resilient, growing at an average of 5.2% in the 2023/24 financial year—higher than global growth of 3.3% and the Sub-Saharan Africa average of 3.8%.
To restore public confidence in fiscal planning, the Treasury has adopted zero-based budgeting and adjusted revenue projections to reflect historical performance.
“There has been public perception and concern in the past that our budgets tend to be unrealistic,” Mbadi acknowledged. “To address these concerns, we adopted zero-based budgeting and aligned revenue projections with trends.”
He also emphasized enhanced public participation in the budgeting process, aligning it with citizens’ priorities.
County Allocations Breakdown
Nairobi County received the highest allocation at Sh21.1 billion, followed by Turkana (Sh13.8 billion), Kakamega (Sh13.6 billion), Nakuru (Sh14.3 billion), and Mandera (Sh12.2 billion).
Other notable allocations include:
- Kiambu: Sh12.9 billion
- Kilifi: Sh12.7 billion
- Wajir: Sh10.3 billion
- Meru: Sh10.4 billion
- Machakos: Sh10 billion
Smaller counties such as Lamu, Tharaka Nithi, and Isiolo will receive Sh3.4 billion, Sh4.6 billion, and Sh5.1 billion respectively.
