Kenyan counties are set to benefit from an additional Sh72.26 billion allocation aimed at enhancing service delivery and accelerating development across several sectors in the 2026/27 financial year.

Funding Details and Sources

The County Governments Additional Allocations Bill, 2026, recently endorsed by the Budget and Appropriations Committee, outlines that the extra funds will be incorporated into county governments’ revenue and appropriation laws for the upcoming fiscal year.

The funding package draws from multiple sources:

  • Sh16.46 billion from the National Government’s revenue share
  • Sh53.82 billion from development partners through loans and grants
  • Additional contributions from court fines and 20% of mineral royalties

Key Areas of Investment

Funds will support programs in health care, agriculture, infrastructure development, drought resilience, and urban planning. Notably, the Community Health Promoters (CHPs) program, which employs over 107,000 CHPs nationwide, will receive backing to sustain monthly stipends jointly funded by national and county governments.

Other priority projects include:

  • Enhancement of County Aggregation and Industrial Parks with basic infrastructure such as electricity, water, access roads, and value addition equipment
  • Transition of Universal Health Coverage workers to permanent and pensionable status under county governments from July 2026
  • Support for climate resilience initiatives, livestock commercialization, and natural resource management
  • Upgrading informal settlements and strengthening urban institutions

Development Partner-Funded Initiatives

The largest share of the additional allocations will fund development partner-backed programs including:

  • Kenya Urban Support Project II
  • Financing Locally Led Climate Action Programme
  • Kenya Devolution Support Programme II Level II Grant
  • Food Systems Resilience Project
  • National Agricultural Value Chain Development Project
  • Building Resilient and Responsive Health Systems Programme

Expected Impact

Committee members emphasized that these allocations will enhance counties’ capacity to implement critical projects, improve access to public services, boost agricultural productivity, and support the Bottom-Up Economic Transformation Agenda (BETA).

The Budget and Appropriations Committee, chaired by Samuel Atandi, has submitted its report, with the National Assembly scheduled to deliberate on the Bill within the week.