Counties to share Sh79b extra allocation in new Senate Bill

Senate's Finance & Budget Committee Chair Ali Roba (centre left) Vice Chair Tabitha Mutinda (centre right) during Budget and Finance committee's sensitization session on the recommendations of the Fourth Basis Revenue sharing formula at Senate Chambers, Parliament, Nairobi. May 22nd,2025 [Elvis Ogina, Standard]

All the 47 devolved units are set to collectively receive Sh79.2billion as part of the County Governments' Additional Allocation in the 2025/2026 financial year, if a new bill that is before the Senate is approved into law.

The County Governments' Additional Allocations Bill, 2025, identifies conditional additional allocations to county governments from the proceeds of loans or grants from development partners in the 2025/2026 financial year.

The bill makes a provision for the transfer of conditional and unconditional additional allocations from the National Government's share of revenue and from development partners to county governments for the financial year 2025/2026.

The bill sponsored by the Senate Finance and Budget Committee Chairman Ali Roba if passed, will ensure that counties access additional funds from the National Government and development partners to facilitate the exercise of their functions.

"The devolved units will receive Sh56.9billion as part of conditional additional allocations to county governments from proceeds of loans or grants from development partners in the 2025/2026 financial year," said Roba.

The amount includes Sh13 billion loan for the Second Kenya Devolution Support Program (KDSP2) - Service Delivery and Investment Grant (Level 2), Sh10.3billion from the International Development Association (IDA) (World Bank) for the Second Kenya Urban Support Project (KUSP2) - Urban Development Grant (UDG) and Sh6.18billion for the County Climate Resilience Investment (CCRI) grant.

At the same time, Sh7.7billion from the World Bank will fund the National Agricultural Value Chain Development Project (NAVCDP), the Kenya Water, Sanitation and Hygiene (KWASH) Programme funded by the German Development Bank will gobble up Sh4.6billion, while the Food Systems Resilience Project (FSRP) will cost Sh3.2 billion.

The Water and Sanitation Development Project (WSDP) will be financed at a cost of Sh3billion across the devolved units, the Kenya Urban Support Project (KUSP) - Urban Institutional Grant (UIG) will be allocated Sh1.3billion while German Development Bank will finance the Drought Resilience Programme in Northern Kenya (DRPNK) at a cost of Sh1.27billion.

"Counties will also receive Sh1.2billion from the German Development Bank for the co-financing of County Climate Resilience Investment (CCRI) Grant," said Roba.

The Kenya Informal Settlement Improvement Project 2 (KISIP2) will be financed by the Agence Francaise de Development (AFD) at a cost of Sh1billion while the Kenya Informal Settlement Improvement Project 2 (KISIP2) will be funded at a cost of Sh840million.

The Kenya Livestock Commercialization Project (KeLCoP) will receive Sh634.5 million in funding, while the Danish International Development Agency (DANIDA) will provide a Sh510 million grant for the Primary Healthcare in Devolved Context (PHC) programme.