NAIROBI, Kenya — The Cabinet has endorsed the Sh4.7 trillion budget for the 2026/27 financial year, setting the fiscal framework for national and county spending amid growing pressure on public finances.
Under the Division of Revenue Bill, 2026, county governments will receive Sh420 billion as their equitable share of national revenue, representing 21.9 per cent of the most recent audited revenue, in line with constitutional requirements.
An additional Sh15.2 billion has been allocated to the Equalisation Fund to support marginalised areas, as provided for under Article 204 of the Constitution.
The allocation comes against the backdrop of persistent disputes between the Senate, National Assembly, and Council of Governors over revenue sharing and the adequacy of funds devolved to counties.
The national budget prioritises infrastructure, social services, and economic recovery, while balancing debt servicing obligations and revenue constraints.
Treasury officials have said the government is committed to fiscal consolidation, even as counties demand more resources to deliver healthcare, agriculture, roads, and water services.
The budget will now proceed to Parliament for scrutiny and approval, where it is expected to trigger debate over spending priorities, public debt, and the sustainability of devolved financing.
