A fresh standoff is looming between county leaders and the National Treasury after a proposal to allocate Ksh420 billion to county governments in the 2026/27 financial year.
In the draft Budget Policy Statement, the Treasury proposed the allocation as an increase from the current Ksh407 billion, saying it meets constitutional requirements. Treasury Cabinet Secretary John Mbadi said the figure represents 21.87 per cent of the latest audited national revenue.
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The Treasury has defended its position, citing revenue shortfalls and growing fiscal pressure. Mbadi noted that ordinary revenue fell below target by Ksh90 billion by September 2025, raising concerns about the sustainability of higher allocations.
With revenue growth lagging behind economic expansion, analysts warn the debate over county funding is likely to intensify as budget talks progress.
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