The Commission on Revenue Allocation (CRA) has proposed an allocation of Ksh458.94 billion for county governments in the 2026/2027 budget.
During a session with the Committee on Budget and Appropriations on Tuesday, February 24, 2026, the committee, led by Mary Wanyonyi Chebukati, clarified that this proposed allocation is grounded in the projected revenue of Ksh2.9 trillion for the fiscal year, an increase from the Ksh2.7 trillion target set for the 2025/26 fiscal year.
The CRA highlighted that an increase of Ksh5 billion for county governments, in contrast to the proposed Ksh152.5 billion for the national government, raises concerns about fairness and balance in resource distribution.
Mary emphasized that the Commission had taken into account the critical service delivery responsibilities expected of county governments.
Additionally, the CRA recommended that the national government engage in intergovernmental agreements when budgeting for devolved functions at the national level to ensure that projects are completed and effectively operationalized.
The Committee also examined submissions from the Office of the Auditor General (OAG), which raised concerns regarding the proposed budget policy statement allocation of Ksh8.776 billion to the OAG. The Office reported a budget shortfall of Ksh2.311 billion, which could hinder its ability to conduct all planned audits across more than 12,000 entities. This shortfall is also expected to impact the auditing of newly incorporated institutions within its jurisdiction, including Level 2 and Level 3 hospitals as well as Technical and Vocational Education and Training (TVET) institutions.
The Committee will thoroughly review the submissions from both the CRA and OAG and will prepare a report for consideration by the House, guiding the debate during the final approval of the fiscal framework.
