County governments are set to receive an additional Sh72.26 billion in the 2026/27 financial year after the National Assembly’s Budget and Appropriations Committee approved the County Governments Additional Allocations Bill, 2026.
The proposed allocations are intended to strengthen devolved service delivery by financing priority programmes in healthcare, agriculture, infrastructure, urban development and climate resilience across the 47 counties.
Once enacted, the additional allocations will be incorporated into county revenue and appropriation laws for the 2026/27 financial year.
Bill provides for national and donor funding
The legislation provides for additional county funding through allocations under Articles 190 and 202(2) of the Constitution, resources supporting the transfer of devolved functions under Article 187, as well as loans and grants from development partners.
The funding package will also include allocations generated from court fines and counties’ share of mineral royalties.
According to the committee, the proposed funding is expected to strengthen county governments’ capacity to implement key development projects while improving access to essential public services.
Development partners provide largest share
Of the proposed allocation, Sh16.46 billion will come from the National Government’s share of revenue, while Sh53.82 billion will be financed through loans and grants provided by development partners.
The remaining allocations will be sourced from other statutory funding streams, including mineral royalty revenues and court fines.
The committee noted that the additional resources will enable counties to accelerate implementation of projects that directly support economic growth and service delivery.
Healthcare and agriculture among key beneficiaries
A significant portion of the funding has been earmarked for health programmes, including support for Community Health Promoters (CHPs) under the government’s primary healthcare strategy.
Kenya currently has approximately 107,831 Community Health Promoters, each receiving a monthly stipend of Sh5,000, jointly financed by the national and county governments.
The Bill also proposes funding to facilitate the transition of Universal Health Coverage (UHC) workers into permanent and pensionable employment under county governments beginning in July 2026.
In agriculture, the committee approved Sh3.25 billion for the County Aggregation and Industrial Parks (CAIPs) programme, directing that the funds prioritise critical infrastructure such as electricity, water supply, access roads and aggregation facilities to enhance value addition.
Climate, infrastructure and urban projects
Development partner financing will also support several ongoing national programmes implemented by county governments.
These include the Kenya Urban Support Project II, Financing Locally Led Climate Action Programme, Kenya Devolution Support Programme II, Food Systems Resilience Project, National Agricultural Value Chain Development Project, and the Building Resilient and Responsive Health Systems Programme.
Additional funding will go toward drought resilience initiatives in northern Kenya, livestock commercialisation, natural resource management, informal settlement upgrading and programmes aimed at strengthening urban governance.
National Assembly to consider Bill
The Budget and Appropriations Committee, chaired by Samuel Atandi, said the additional allocations will help counties implement priority development programmes, strengthen climate resilience, increase agricultural productivity and enhance the delivery of essential public services.
The committee has tabled its report before the National Assembly, which is expected to debate and consider the Bill before it proceeds to the next stage of the legislative process.
