MPs Approve Sh405 Billion for Counties in 2025/26
Kenya’s National Assembly just gave counties a major financial boost. Lawmakers approved a county allocations package of Sh405 billion for the 2025/26 financial year. That’s not all—the package also throws in an extra Sh69.8 billion as additional funds to support various county projects and cover special needs. This is no small increment. The approved total marks a 4.5% increase—Sh17.7 billion more—over the last fiscal cycle. For local leaders, it’s the kind of budget that could finally address persistent gaps in service delivery.
Where is all this money going? For starters, the Kenya budget breakdown isn’t just about throwing more cash in the pot. The Budget Policy Statement (BPS), which guides where and how the money is allocated, spells out detailed limits. The lion’s share of Sh2.4 trillion goes to the Executive, while Parliament gets Sh49.5 billion and the Judiciary Sh26.7 billion. But the new county allocation is being celebrated for giving regions outside Nairobi a real footing when it comes to resource distribution.
Focus on Equality and Accountability
The new BPS framework isn’t only about baseline numbers. A big talking point has been the Equalization Fund, which is set at Sh7.9 billion this cycle—plus another Sh3.5 billion to settle long-standing arrears. These funds are aimed squarely at marginalized areas: think remote northern counties, arid zones, and regions with chronic water shortages. The Fund is designed to help level the playing field with better access to basic health, education, and infrastructure.
Putting money in isn’t the only focus. The BPS flagged Sh3 billion to ramp up public participation—essentially making it less of a box-ticking exercise and more of a real exchange between citizens and their local governments. Oversight is getting a leg up too, with the Auditor General’s office seeing an allocation of Sh8.7 billion. That increased funding is expected to help track and curb misuse of public funds—a problem that’s kept cropping up and triggered public outcry in the past.
The 2025/26 National Assembly allocations and spending ceilings set a tone for the year ahead. There’s a noticeable push for transparency and direct engagement at the county level, reflecting a national sentiment that wants not just bigger budgets, but smarter, more targeted spending. These adjustments may not solve all issues overnight, but the signal is clear—local governments are getting a beefed-up role and more resources to actually make a difference in their communities. Counties that once felt left behind could soon see the impact of these changes on the ground.
