The Commission on Revenue Allocation (CRA) has proposed a resource allocation of Sh458.94 billion to the County Governments, citing the need for equitable sharing between the two levels of government.
Led by its chairperson, CPA Mary Wanyonyi Chebukati, the Commission made their submissions regarding the 2026 Budget Policy Statement (BPS) before the Committee on Budget and Appropriations.
She explained that the Commission’s proposed county allocation is based on the Financial Year (FY) 2026/27 revenue projection of Sh2,901.9 billion from a target of Sh2,744.4 billion in the FY 2025/26 and that the revenue is expected to grow by Sh157.5 billion.
Following her presentation, the Committee Chairperson, Samuel Atandi sought to be appraised on the basis used by the Commission to arrive at the huge figure.
“Being cognizant of the most important factors in the sharing of revenue between the National and County governments, how did you arrive at the proposed resource allocation to the County Governments?” posed Atandi.
According to CRA, an increase of KES. 5.0 billion to the County Government allocation, against the proposed Sh152.5 billion to the national government is unfair, raising concerns on balance in resource distribution.
She also added that the Commission had considered the service delivery that the County Governments are expected to undertake.
Additionally, she recommended that the national government should enter into intergovernmental agreements where devolved functions are being budgeted at the national level to ensure that projects are completed and operationalized.
The Committee also reviewed submissions from the Office of the Auditor General (OAG) led by the Auditor-General, FCPA Nancy Gathungu who expressed concern over the proposed BPS allocation to the OAG of Sh8.776 billion, stating that the Office is facing a budget shortfall of Sh2.311 billion.
She noted that the funding deficit would limit the Office’s ability to conduct all planned audits within its audit universe of more than 12,000 entities and that the shortfall is also expected to affect the auditing of newly incorporated institutions within its mandate, including Level 2 and 3 hospitals and Technical and Vocational Education and Training (TVET) institutions.
The Committee is set to scrutinize the submissions from both the CRA and OAG and prepare a report for consideration by the House and to guide the debate during the final approval of the fiscal framework.
