Governors are under renewed scrutiny as county governments are set to receive a record Sh568.11 billion in the 2025-26 financial year, the highest allocation since the inception of devolution. This unprecedented funding boost, sourced from a combination of national revenue, loans, grants, and county-generated income, presents a critical test of leadership at the county level.
An analysis shows that Sh415 billion will come from the equitable share of nationally raised revenue, following a compromise between the National Assembly and Senate. Senators had initially demanded Sh465 billion, while MPs offered Sh405 billion. Parliament eventually approved the Sh415 billion figure after intense negotiations.
In addition, Sh16.8 billion will be disbursed from the Equalisation Fund to 34 counties for the provision of basic services such as water, roads, electricity, and health facilities in marginalised areas. Counties are also expected to raise at least Sh50 billion in own-source revenue, boosting their financial independence.
Further allocations include Sh69.8 billion in conditional grants. These comprise Sh56.9 billion from loans and development partners and Sh2.94 billion from mineral royalties and court fines. Among the major funded projects are Sh13 billion for the Second Kenya Devolution Support Programme, Sh10.3 billion for the Kenya Urban Support Project, Sh7.7 billion for agricultural value chain development, and Sh6.18 billion for climate resilience.
Other notable grants include Sh4.6 billion for water, sanitation, and hygiene projects funded by the German Development Bank, Sh3.2 billion for the Food Systems Resilience Project, and Sh3 billion for the Water and Sanitation Development Project.
The national government will also provide Sh9.94 billion for various projects, including community health promoter payments, construction of county headquarters, and establishment of county aggregation and industrial parks.
This massive financial injection now places counties under public and institutional watch to ensure transparency, accountability, and service delivery. Persistent concerns over corruption, wasteful expenditure, and misallocation of resources highlight the need for effective oversight and responsible leadership to justify these historic allocations and fulfill the promise of devolution.
