The Commission on Revenue Allocation (CRA) has recommended that the 47 county governments receive Sh457.28 billion as their equitable share of national revenue in the 2027/28 financial year, an increase of Sh29.28 billion on the Sh428 billion they are getting this year.

CRA chairperson Mary Wanyonyi Chebukati unveiled the proposal at a press briefing in Nairobi on Thursday, October 29, saying it was based on a projected shareable revenue pool of about Sh3.25 trillion. The proposed county share works out at 22.3 per cent of the most recent audited national revenue, well above the 15 per cent floor set by the Constitution.

"Our objective remains clear: no Kenyan should be left behind," Chebukati said, according to Citizen Digital.

What the extra money is for

The commission says the increase is meant to cover costs that counties have already taken on or will face in the coming year. These include:

  • Salaries for health workers hired under the Universal Health Coverage (UHC) programme
  • Pay reviews approved by the Salaries and Remuneration Commission
  • Collective bargaining agreements signed with nursing unions
  • An estimated 3 per cent rise in the cost of delivering services

Caps on county spending

Alongside the bigger allocation, the CRA has proposed a Sh76.22 billion ceiling on recurrent spending by county institutions, which Chebukati said was meant to support "fiscal discipline".

Under the proposed limits, county assemblies would be capped at Sh50.367 billion, a figure the commission says takes into account salaries, training, staffing and the reimbursement of MCAs' vehicle costs. County executives would be held to Sh25.853 billion, including an extra Sh602 million largely meant for Bungoma County's village administration units.

Governors cry over late releases

The proposal lands as governors push for far more money. Earlier this month the Council of Governors rejected a lower CRA figure of about Sh440.84 billion and said counties needed at least Sh500 billion in 2027/28, arguing that pay rises and devolved health costs had outgrown their budgets.

Council of Governors chairperson and Tharaka Nithi Governor Muthomi Njuki said the problem was not only the size of the allocation but how late the cash arrives. He pointed to Sh8.9 billion meant to absorb UHC staff into county service on permanent and pensionable terms, which he said had not been released on time.

"We have been forced to take overdrafts," Njuki said.

What happens next

The recommendations now go to the Senate, which will weigh them as preparations for the 2027/28 budget begin. The final county share is set in the Division of Revenue Act, which also requires agreement with the National Assembly and the National Treasury. In past years the Treasury, the CRA and senators have each proposed different figures, with the final number often landing below what the commission recommends.

For residents, the outcome will shape how much counties can spend on hospitals, roads, early childhood education and water projects in the year leading up to and after the August 2027 General Election.

Photos: Citizen Digital; The Standard/Collins Oduor. Thumbnail design: HAMASTA MEDIA.