In his first budget statement as Cabinet Secretary for the National Treasury, John Mbadi has announced a significant increase in funding to county governments, allocating a record Sh405.1 billion for the 2025/26 financial year.
This represents 25.79% of the nationally raised revenue based on the most recent audited accounts from 2020/21, marking a Sh17.6 billion rise from the previous year’s Sh387.4 billion allocation.
The move underscores the national government’s renewed commitment to economic recovery, devolution, and grassroots development.
While tabling the budget estimates in Parliament, CS Mbadi emphasized the need for inclusive growth and transparency.
“I remain mindful of the aspirations and high expectations as I serve in this office. This budget reaffirms the priority policies and strategies aimed at stimulating economic recovery,” Mbadi told Parliament.
In addition to the equitable share, Sh9.95 billion has been set aside as conditional allocations from the national government’s revenue share, with another Sh56.91 billion coming in as conditional grants from development partners.
These allocations are part of the broader budgetary framework, which places the total shareable revenue at Sh2.835 trillion, with the national government receiving Sh2.419 trillion.
Mbadi emphasized that the budget was guided by Kenya’s ongoing economic recovery efforts, following a challenging period marked by global and domestic financial shocks.
He acknowledged the expectations Kenyans have of the Treasury and affirmed the government’s commitment to responsible and people-centered budgeting.
Highlighting Kenya’s economic resilience, Mbadi noted that the country recorded an average growth of 5.2 percent in the 2023/24 financial year, outperforming global growth rates of 3.3 percent and Sub-Saharan Africa’s 3.8 percent.
He attributed this performance to deliberate policy shifts, including enhanced public participation in key decision-making processes such as budget formulation.
As part of the equitable share, all 47 counties are set to receive allocations reflective of their size, needs, and population.
Nairobi tops the list with Sh21.1 billion, followed by counties like Nakuru (Sh14.3 billion), Turkana (Sh13.8 billion), and Kakamega (Sh13.6 billion).
Smaller counties such as Lamu and Tharaka Nithi are also included, with allocations of Sh3.4 billion and Sh4.6 billion respectively.
Others are Baringo (Sh7 billion), Bomet (Sh7.3 billion), Bungoma (Sh11.7 billion), Busia (Sh7.9 billion), Elgeyo Marakwet (Sh5 billion), Embu (Sh5.6 billion), Garissa (Sh8.7 billion), Homa Bay (Sh8.5 billion), Isiolo (Sh5.1 billion), Kajiado (Sh8.7 billion), Kakamega (Sh13.6 billion), Kericho (Sh7.1 billion), Kiambu (Sh12.9 billion), Kilifi (Sh12.7 billion), Kirinyaga (Sh5.7 billion), and Kisii (Sh9.7 billion).
Kisumu will receive Sh8.8 billion, Kitui (Sh11.4 billion), Kwale (Sh9 billion), Laikipia (Sh5.6 billion), Lamu (Sh3.4 billion), Machakos (Sh10 billion), Makueni (Sh8.9 billion), Mandera (Sh12.2 billion), Marsabit (Sh7.9 billion), and Meru (Sh10.4 billion).
Migori is allocated Sh8.8 billion, Mombasa (Sh8.2 billion), Murang’a (Sh7.8 billion), Nairobi (Sh21.1 billion), Nakuru (Sh14.3 billion), Nandi (Sh7.7 billion), Narok (Sh9.6 billion), Nyamira (Sh5.6 billion), Nyandarua (Sh6.2 billion), Nyeri (Sh6.8 billion), Samburu (Sh5.9 billion), and Siaya (Sh7.6 billion).
Taita Taveta will receive Sh5.3 billion, Tana River (Sh7.1 billion), Tharaka Nithi (Sh4.6 billion), Trans Nzoia (Sh7.9 billion), Turkana (Sh13.8 billion), Uasin Gishu (Sh8.9 billion), Vihiga (Sh5.5 billion), Wajir (Sh10.3 billion), and West Pokot (Sh6.9 billion).
These funds are expected to bolster service delivery, infrastructure, health, and education at the county level.
Mbadi also responded to long-standing concerns about the credibility of previous budgets, which many critics labeled as unrealistic.
He said the Treasury had taken a more pragmatic approach by adopting zero-based budgeting and aligning revenue projections more closely with actual performance trends.
“There has been public perception and concern in the past that our budgets tend to be unrealistic. To address these concerns, we adopted the zero-based budgeting and reduced revenue projection to be in line with trends,” he explained.
The budget also puts a spotlight on transformative investments in the education sector, with reforms targeting the stabilization of the Competency-Based Curriculum (CBC).
As counties prepare to receive increased funding, all eyes are now on governors and county assemblies to ensure the money is used transparently, efficiently, and in ways that directly benefit wananchi.
