NAIROBI, Kenya – Counties are now a step closer to accessing Sh415 billion in national revenue after the National Assembly passed the County Allocation of Revenue Bill, 2025, paving the way for presidential assent.
The Bill outlines the equitable distribution of funds among Kenya’s 47 counties, based on the revenue-sharing formula approved by Parliament.
Nairobi County is set to receive the largest allocation at Sh21.4 billion, followed by Nakuru (Sh14.4 billion), Turkana (Sh13.8 billion), and Kakamega (Sh13.6 billion).
On the lower end of the scale, sparsely populated counties such as Lamu, Tharaka Nithi, Elgeyo Marakwet, Isiolo, and Taita Taveta will each receive under Sh6 billion.
Debate Over County Spending Priorities
During the debate, lawmakers raised concern over the growing imbalance between recurrent and development spending by county governments, warning that billions in public funds are being consumed by salaries and administrative costs rather than tangible projects.
“County governments have been spending a lot of money on recurrent expenditures at the expense of development, and it is the decision of the Senate and the Commission on Revenue Allocation that this money be cut,” said Budget and Appropriations Committee chairperson Samuel Atandi.
Atandi, however, defended a Sh3.57 billion boost to county assembly budgets, arguing that strengthening legislative oversight would ensure greater accountability by governors.
Calls for Efficiency and Accountability
Majority Whip Silvanus Osoro challenged counties to demonstrate value for money. “We send huge amounts to the counties, but you hardly see what it does,” he remarked.
Minority Whip Millie Odhiambo accused some governors of abandoning key development priorities in favour of political agendas.
She also reignited the debate on the future of the National Government Constituency Development Fund (NG-CDF), suggesting that it be channelled through counties to enhance coordination and reduce duplication.
Once President William Ruto signs the Bill into law, the National Treasury will be authorized to disburse the funds, enabling counties to begin implementing their 2025/2026 budgets.
The passage of the Bill comes amid growing scrutiny of the devolution system, with many projects stalled across counties and questions raised over the effectiveness of oversight mechanisms.
