The Budget and Appropriations Committee has formally adopted the County Allocation of Revenue Bill, 2025 (Senate Bills No. 9 of 2025), setting the equitable share of national revenue to County Governments at KShs. 415 billion for the Financial Year 2025/26.
This development follows the successful conclusion of a mediation process between the National Assembly and the Senate on the Division of Revenue Bill, 2025. The agreement paves the way for timely disbursement of funds to all 47 counties.
The newly approved bill contains two critical schedules:
Schedule I details the individual allocations to each County Government.
Schedule II outlines ceilings on recurrent expenditure for County Assemblies and County Executives.
The horizontal sharing of the KShs. 415 billion is guided by the Fourth Revenue Sharing Basis, adopted by Parliament on June 24, 2025, under Article 217 of the Constitution. This formula will govern allocations for five financial years, from 2025/26 to 2029/30.
Key Features of the Fourth Revenue Sharing Formula:
Baseline Allocation: KShs. 387.425 billion (maintained from FY 2024/25)
Affirmative Allocation: KShs. 4.46 billion equally distributed to 12 marginalised counties
Additional Equitable Share: KShs. 23.115 billion, apportioned using the new formula
The formula applies the following weightings:
Population Index – 45%
Basic Share Index – 35%
Poverty Index – 12%
Geographical Size Index – 8%
Counties With Highest 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%
These 12 counties have been allocated a combined KShs. 8.35 billion, representing about 30% of the KShs. 27.6 billion in new revenue. This move signals a deliberate shift toward reducing regional disparities and promoting equitable development across Kenya.
The adoption of the bill now awaits implementation by the National Treasury, enabling counties to proceed with budgeting and service delivery plans for the 2025/26 fiscal year.
