Nairobi leads August revenue allocation as counties receive Sh33.2 billion
The disbursement follows the approval of the County Allocation of Revenue Bill, 2025, which outlines how Sh415 billion of national revenue will be distributed to the 47 counties for the 2025/26 financial year.
Nairobi County has received the largest share of August’s equitable revenue allocation, with Controller of Budget Margaret Nyakang’o authorising Sh33.2 billion for release to county governments.
The disbursement follows the approval of the County Allocation of Revenue Bill, 2025, which outlines how Sh415 billion of national revenue will be distributed to the 47 counties for the 2025/26 financial year.
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The legislation, adopted by the Budget and Appropriations Committee on August 6, determines the equitable share of national revenue to counties. Its passage came after mediation between the National Assembly and the Senate over the Division of Revenue Bill, 2025, which had stalled due to disagreements on revenue distribution to devolved units.
“The allocation ensures that counties receive their fair share to implement development projects and enhance service delivery,” Nyakang’o said.
The bill structures the distribution through two schedules: Schedule I details allocations for individual counties, while Schedule II sets ceilings on recurrent expenditure for county assemblies and executives.
The Sh415 billion distribution is guided by the Fourth Revenue Sharing Basis, adopted by Parliament on June 24, 2025, under Article 217 of the Constitution. The formula, which will guide allocations for five financial years from 2025–26 to 2029–30, uses population (45 per cent), basic share (35 per cent), poverty (12 per cent), and geographical size (8 per cent) to determine allocations.
Largest allocation
Among counties, Nairobi received the largest allocation at Sh1,713,370,272, reflecting its population and economic significance. Nakuru followed with Sh1,156,411,813, Turkana with Sh1,111,406,190, and Kakamega at Sh1,093,987,885. Kiambu was allocated Sh1,045,745,439, while Kilifi received Sh1,025,071,742.
Smaller counties—including Lamu, Tharaka-Nithi, Isiolo, Elgeyo-Marakwet, Vihiga, Taita Taveta, Laikipia, Embu, Kirinyaga, Nyamira, Samburu, and Nyandarua—recorded the highest increases in allocation based on the weighted indices of the Fourth Revenue Sharing Basis.
The first equitable share transfers for the 2025/26 fiscal year came in August, after no disbursements were made in July. The National Treasury released Sh32.93 billion, equal to 7.9 per cent of the Sh415 billion allocated under the County Allocation of Revenue Act, 2025.
The Treasury noted that the release marks a significant step towards fiscal decentralisation, enabling counties to implement planned development projects.
All counties are also awaiting Sh93.53 billion in additional allocations under the County Governments Additional Allocations Bill, 2025, which is still under debate in Parliament. Once enacted, the funds will be routed through relevant ministries and agencies.
Since devolution began in 2013, total disbursements to counties have reached about Sh4 trillion, highlighting both the scale of decentralisation and the fiscal pressure on the national exchequer.
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