MPs back Sh72 B County funding plan

Audio By Vocalize

The National Assembly's Budget and Appropriations Committee has endorsed the  County Governments Additional Allocations Bill, 2026.

This will pave the way for counties to receive an additional Sh72.26 billion to finance health services, agriculture, climate resilience and critical infrastructure projects during the 2026/27 financial year.

The Bill, which was passed by the Senate before being referred to the National Assembly, seeks to provide supplementary funding from the National Government and development partners to strengthen service delivery and accelerate county development programmes.

The Committee, chaired by Alego Usonga MP Samuel Atandi, reviewed the legislation and recommended its consideration by the House this week.

If approved, the additional allocations will comprise Sh16.46 billion from the National Government's share of revenue, Sh53.82 billion from loans and grants provided by development partners, as well as revenue generated from court fines and the 20 percent share of mineral royalties due to county governments.

Among the key beneficiaries is the Community Health Promoters (CHPs) programme, which supports the government's primary healthcare agenda. Kenya currently has about 107,831 Community Health Promoters serving across all 47 counties, each receiving a monthly stipend of Sh5,000, jointly funded by the national and county governments.

The Bill also provides Sh3.25 billion for the County Aggregation and Industrial Parks programme, one of the flagship initiatives under the Bottom-Up Economic Transformation Agenda aimed at promoting value addition, agro-processing and manufacturing.

The Committee observed that the funds should prioritize essential infrastructure, including electricity, water supply, aggregation equipment and access roads, to ensure the industrial parks become fully operational.

Another major component of the Bill is funding to facilitate the transition of Universal Health Coverage workers into permanent and pensionable employment under county governments beginning in July 2026, a move expected to strengthen healthcare delivery across the country.

Development partner-supported programmes account for the largest share of the proposed allocations. They include the Kenya Urban Support Project II, the Financing Locally Led Climate Action Programme, the Kenya Devolution Support Programme II, the Food Systems Resilience Project, the National Agricultural Value Chain Development Project and the Building Resilient and Responsive Health Systems Programme.

Additional resources have also been earmarked for drought resilience initiatives in northern Kenya, livestock commercialization, integrated natural resource management, upgrading informal settlements and strengthening urban institutions.

Committee members said the proposed allocations would significantly enhance county governments' capacity to implement priority development projects while improving access to healthcare, agricultural services, climate adaptation programmes and urban infrastructure.

They further noted that the funding aligns with the government's Bottom-Up Economic Transformation Agenda by supporting food security, economic growth, job creation and improved public service delivery at the county level.

The Committee has tabled its report before the National Assembly, which is expected to debate and consider the Bill before the additional allocations can be released to county governments for implementation.