The Senate Finance and Budget Committee has reaffirmed its commitment to push for an increase in equitable revenue share to counties, proposing a Ksh 465 billion allocation in the 2025/26 financial year. This marks a significant rise from the current Ksh 405 billion disbursed to the devolved units.
While reviewing the Division of Revenue Bill 2025 on Tuesday, Senators cited mounting statutory obligations as a major factor behind the proposed increase. These include the recently implemented housing levy, enhanced contributions to the National Social Security Fund (NSSF), and the growing cost of managing devolved functions.
Lawmakers argued that these financial pressures have severely constrained county governments’ ability to settle pending bills and maintain service delivery. “Counties are facing rising statutory deductions that continue to eat into their budgets. It’s only fair that we increase their share to reflect the current economic demands,” the committee noted.
At the same time, Senators urged county administrations to improve their own-source revenue collection and accountability to enhance financial sustainability. They emphasized that while national transfers are essential, counties must also innovate to generate local income.
The renewed push comes as the Senate also called on the National Government to promote regional equity in development planning and resource distribution. Legislators emphasized that increased allocations should be matched by a fair share of national development projects across all counties.
The final decision on the proposed allocation will be determined through consultations with the National Assembly and the National Treasury in the coming weeks.
Written By Rodney Mbua
