The Budget and Appropriations Committee has backed a Bill that would channel Ksh 72.26 billion in additional funding to County Governments, with the allocations targeting healthcare, agriculture, affordable housing, climate resilience, urban infrastructure and devolution programmes in the 2026/27 financial year.
Chaired by MP Samuel Atandi, the Committee is considering the County Governments Additional Allocations Bill (Senate Bills No. 8 of 2026) after it was passed by the Senate and transmitted to the National Assembly for consideration.
The Bill provides the legal framework for transferring conditional allocations from the National Government and development partners to counties under Article 202 of the Constitution and the Public Finance Management Act.
If approved, the Bill will unlock Ksh 16.46 billion from the National Government’s share of revenue and Ksh 53.82 billion from loans and grants provided by development partners.
Committee Members noted that the allocations are intended to strengthen counties’ capacity to deliver devolved services while supporting the implementation of national development priorities under the Bottom-Up Economic Transformation Agenda.
The Bill earmarks funding to facilitate the transition of Universal Health Coverage (UHC) workers into permanent and pensionable employment under county governments beginning July 2026.
It also allocates resources for the payment of stipends to more than 107,000 Community Health Promoters (CHPs) across all 47 counties.
The legislation further proposes Ksh 2.48 billion for the Building Resilient and Responsive Health Systems (BREHS) Programme to strengthen community health services and improve operations at Level Two and Three health facilities.
Among the flagship interventions is Ksh 3.9 billion for the Food Systems Resilience Project to strengthen agricultural value chains and climate-smart farming in 13 counties.
Another Ksh 3.5 billion has been proposed for the National Agricultural Value Chain Development Project to support commercialisation of agriculture in 34 counties, while Ksh 3.25 billion has been earmarked for County Aggregation and Industrial Parks aimed at promoting agro-processing and value addition.
Committee Members observed that funding for the industrial parks had previously been rationalised to prioritise essential infrastructure, including water, electricity and access roads, before expanding to additional facilities.
Urban development is another major beneficiary with an allocation of Ksh 16.7 billion for the Kenya Urban Support Project II to finance infrastructure development in 79 urban centres across 45 counties, alongside Ksh 954.7 million to strengthen urban governance institutions.
Counties with active mining operations are also set to benefit through a Ksh 1.83 billion allocation representing their constitutional 20% share of mineral royalties.
The Bill further allocates Ksh 148.4 million in proceeds from court fines collected through enforcement of county legislation, with Nairobi, Machakos, Mombasa and Uasin Gishu receiving the largest shares owing to higher levels of urbanisation and regulatory enforcement.
The Budget and Appropriations Committee has tabled its Report and the National Assembly is expected to debate it this week.
