Counties will collectively receive additional Ksh67.78 billion in new county allocation funds for the 2025/26 financial year, following the passage of a new bill by the National Assembly.
During its Tuesday, September 30, session, the MPs passed the County Governments Additional Allocations (No. 2) Bill (Senate Bill No. 8 of 2025), with the funds expected from conditional allocations from both the national government and development partners.
Firstly, the passing of the bill allows for a new Second Schedule that outlines conditional additional allocations from the national government’s share of revenue, providing a collective Ksh9.98 billion for all counties.
Additionally, the MPs adopted a new Fourth Schedule that will enable conditional allocations to county governments from loans and grants by development partners, amounting to Ksh57.7 billion.
This brings the amount the counties will collectively receive to Ksh67.68 billion.
The Ksh9.98 billion amount from the national government's share targets developments in select high-priority sectors, including healthcare, housing, industrialisation, and infrastructure.
More specifically, the amount will be channelled towards the settlement of doctors' salary arrears, the Community Health Promoters (CHPs) programme and even the construction of County Headquarters.
Furthermore, it will be used for the County Aggregation and Industrial Parks (CAIPs), and lastly, the allocations from 0.5 per cent of the Housing Levy Fund to County Rural and Urban Affordable Housing Committees.
Kajiado, Kericho, Kitui, Laikipia, Marsabit, Nyeri, and Vihiga Counties will, for instance, benefit from Ksh250 million each for the CAIPs programme, while Isiolo, Lamu, Nyandarua, Tana River, and Tharaka Nithi counties will receive funds for the construction of new county headquarters.
The 57.7 billion, on the other hand, will support key programmes including the Food Systems Resilience Project, the Drought Resilience Programme in Northern Kenya, the Kenya Devolution Support Programme (KDSP II), Kenya Urban Support Project (KUSP II), the Kenya Water, Sanitation and Hygiene (KWASH) Programme, and the Kenya Informal Settlements Improvement Project (KISIP II).
"This legislation ensures that counties are not only adequately resourced but are also empowered to deliver programmes that directly touch on the lives of ordinary citizens, from healthcare to affordable housing and climate resilience,” the Chairperson of the Budget and Appropriations Committee, Samuel Atandi, said.
Following the National Assembly's decision, the bill moves to the Senate for consideration.
This development comes just over a month after President William Ruto signed into law the County Allocation of Revenue Bill 2025, paving the way for the disbursement of a record Ksh415 billion to all 47 county governments in the new financial year.
