CRA proposes Ksh.457 billion for counties in 2027/28 Financial Year

The Commission on Revenue Allocation (CRA) has proposed Ksh.457.28 billion for county governments in the 2027/28 financial year, an increase of Ksh.29.28 billion from the current financial year’s allocation.

The recommendation would raise the county equitable share from Ksh.428 billion in the 2026/27 financial year, with the commission saying the additional funding would support healthcare, accommodate public-sector pay adjustments and sustain service delivery across the 47 devolved units.

Against a projected shareable revenue pool of Ksh.3.25 trillion, the proposed county allocation would account for 22.3 per cent of audited national revenue, above the constitutional minimum of 15 per cent.

The commission attributed the proposed increase to funding for Universal Health Coverage staff salaries, Salaries and Remuneration Commission-approved pay reviews, nursing unions’ collective bargaining agreements and an estimated three per cent growth in the cost of service delivery.

“Our recommendation is evidence-based, constitutionally grounded and responsive to the financing needs of county governments. Our objective remains clear: no Kenyan should be left behind," said CRA chairperson Mary Wanyonyi Chebukati.

Alongside the revenue-sharing proposal, the commission has recommended a Ksh.76.22 billion ceiling on recurrent expenditure by county institutions, in a move aimed at controlling day-to-day spending.

“The ceilings are intended to support fiscal discipline and ensure that county institutions operate effectively within available resources," Chebukati added.

Under the proposed ceilings, county assemblies would receive Ksh.50.367 billion, with allocations influenced by Members of County Assemblies’ vehicle reimbursements, salaries, training and staffing requirements.

County executives would receive Ksh.25.853 billion, including an additional Ksh.602 million largely intended to accommodate Bungoma County’s village administration structures and associated operational costs.

The recommendations come amid concerns from the Council of Governors over delays in disbursing Ksh.8.9 billion intended to facilitate the absorption of Universal Health Coverage staff into county governments on permanent and pensionable terms.

Council of Governors chairperson and Tharaka Nithi Governor Muthomi Njuki has said the delays have forced counties to rely on overdrafts.

The proposals will now be considered by the Senate as preparations for the 2027/28 budget cycle get underway.