The Budget and Appropriations Committee has officially adopted the County Allocation of Revenue Bill, 2025 (Senate Bills No. 9 of 2025).
This sets the equitable share of revenue to be disbursed to County Governments at KShs. 415 billion for the Financial Year 2025/26.
This figure was agreed upon following the conclusion of the mediation process on the Division of Revenue Bill, 2025, between the National Assembly and the Senate.
The County Allocation of Revenue Bill contains two key schedules:
• Schedule I: Outlines the equitable share allocated to each of the 47 County Governments.
• Schedule II: Provides ceilings on recurrent expenditures for County Assemblies and County Executives.
The horizontal sharing of the Kshs. 415 billion is based on the Fourth Revenue Sharing Basis, which Parliament approved on June 24, 2025, as provided under Article 217 of the Constitution. This formula will guide allocations for five years from FY 2025/26 to FY 2029/30.
Key Components of the Fourth Basis:
• Baseline Allocation: Kshs. 387.425 billion (FY 2024/25 allocation)
• Affirmative Allocation: Kshs. 4.46 billion equally shared among 12 marginalised counties
• Additional Equitable Share: Kshs. 23.115 billion, distributed based on the new formula
The formula uses the following weighted parameters:
• Population Index – 45%
• Basic Share Index – 35%
• Poverty Index – 12%
• Geographical Size Index – 8%
Counties with the Highest Percentage Increase in Allocation:
• Lamu – 18.53%
• Tharaka-Nithi – 14.97%
• Isiolo – 14.38%
• Elgeyo-Marakwet – 14.26%
• Taita-Taveta – 13.70%
• Vihiga – 13.52%
• Laikipia – 13.31%
• Nyamira – 13.31%
• Embu – 13.18%
• Kirinyaga – 12.89%
• Samburu – 12.69%
• Nyandarua – 12.23%
A total of Kshs. 8.35 billion—about 30% of the Kshs. 27.6 billion in new revenue—has been allocated to these 12 counties in the current financial year, reflecting efforts to address disparities and enhance equitable development across regions.
