Kenya’s 47 counties are set to receive a total of Sh79.2 billion in additional funding for the 2025/2026 financial year if a new bill before the Senate is passed into law.
The County Governments’ Additional Allocations Bill, 2025, sponsored by Senate Finance and Budget Committee Chairperson Ali Roba, seeks to provide counties with extra financial support through conditional and unconditional allocations from the national government and development partners.
“This bill will enable counties to access additional resources to strengthen service delivery and carry out devolved functions effectively,” said Roba.
Of the Sh79.2 billion, Sh56.9 billion will come from loans and grants by development partners, channeled into critical areas such as infrastructure, healthcare, agriculture, climate resilience, and water and sanitation.
Breakdown of Key Allocations:
- Sh13 billion – Kenya Devolution Support Program (KDSP2) for service delivery and investment
- Sh10.3 billion – Kenya Urban Support Project (KUSP2) – Urban Development Grant (World Bank)
- Sh6.18 billion – County Climate Resilience Investment (CCRI) Grant
- Sh7.7 billion – National Agricultural Value Chain Development Project (NAVCDP) (World Bank)
- Sh4.6 billion – Kenya Water, Sanitation and Hygiene Programme (KWASH) (German Development Bank)
- Sh3.2 billion – Food Systems Resilience Project (FSRP)
- Sh3 billion – Water and Sanitation Development Project (WSDP)
- Sh1.3 billion – Kenya Urban Support Project (KUSP) – Urban Institutional Grant
- Sh1.27 billion – Drought Resilience Programme in Northern Kenya (German Development Bank)
- Sh1.2 billion – Co-financing of CCRI Grant (German Development Bank)
- Sh1 billion – Kenya Informal Settlement Improvement Project 2 (KISIP2) (AFD)
- Sh840 million – Additional KISIP2 support
- Sh634.5 million – Kenya Livestock Commercialization Project (KeLCoP)
- Sh510 million – Primary Healthcare in Devolved Context (PHC) (DANIDA)
If approved, the bill will ensure smoother transfers of funds to counties and allow for better coordination between national and county governments, especially in implementing donor-funded programs. The move is seen as a major boost for devolution and a step toward addressing development gaps at the grassroots level.
