National Assembly approves Ksh67.7 billion boost to counties for healthcare, housing, industrialization and key development projects

Counties are set to receive an additional Ksh67.7 billion for the 2025/26 financial year after Members of Parliament passed the County Governments Additional Allocations (No. 2) Bill (Senate Bill No. 8 of 2025).

The Bill, approved on Tuesday, September 30, will channel conditional allocations from both the national government and development partners into key priority areas across the 47 devolved units.

A new Second Schedule allocates Ksh9.98 billion from the national government’s share of revenue. The funds will go towards settling doctors’ salary arrears, supporting the Community Health Promoters (CHPs) program, constructing county headquarters, rolling out County Aggregation and Industrial Parks (CAIPs), and affordable housing initiatives under the Housing Levy Fund.

For example, Kajiado, Kericho, Kitui, Laikipia, Marsabit, Nyeri, and Vihiga counties will each receive Ksh250 million for CAIPs, while Isiolo, Lamu, Nyandarua, Tana River, and Tharaka Nithi counties will benefit from the construction of new county headquarters.

In addition, a new Fourth Schedule provides Ksh57.7 billion from loans and grants by development partners. These funds will support major development initiatives including the Food Systems Resilience Project, the Drought Resilience Program in Northern Kenya, the Kenya Devolution Support Program (KDSP II), the Kenya Urban Support Project (KUSP II), the Kenya Water, Sanitation and Hygiene (KWASH) Program, and the Kenya Informal Settlements Improvement Project (KISIP II).

Budget and Appropriations Committee Chairperson Samuel Atandi hailed the allocations as a major step forward for devolution.

“This legislation ensures that counties are not only adequately resourced but are also empowered to deliver programs that directly touch on the lives of ordinary citizens, from healthcare to affordable housing and climate resilience,” he said.

The Bill now moves to the Senate for consideration before the money can be disbursed.

This development comes barely a month after President William Ruto signed into law the County Allocation of Revenue Bill 2025, which unlocked a record Ksh415 billion for all 47 counties.

County leaders have welcomed the new funding, describing it as a timely boost that will strengthen service delivery and safeguard the spirit of devolution.