The Council of Governors (CoG) has rejected a proposal by the Commission on Revenue Allocation (CRA) to give counties Sh440.8 billion in the 2027/28 financial year, saying the amount is too low to cover their growing wage bills and the functions recently transferred to them.
During an engagement on the vertical sharing of revenue between the national and county governments on October 14, 2026, governors asked for additional funding of at least Sh91.5 billion to close what they described as critical gaps, with some estimates putting their total demand above Sh100 billion.
They also questioned the commission’s independence, claiming that it had aligned its recommendations with those of the National Treasury and had met the National Assembly and the Senate before consulting county leaders.
Under the CRA’s recommendations, the national government would keep about Sh2.79 trillion of the projected shareable revenue of Sh3.24 trillion, while counties would receive Sh440.84 billion as their equitable share.
Marginalised areas would get a further Sh10.25 billion through the Equalisation Fund. The county allocation is lower than the Sh458 billion the commission had recommended for the 2026/27 cycle, although it is higher than the Treasury’s earlier proposal of Sh420 billion.
CRA Chairperson Mary Chebukati said the figure was worked out as a share of the latest audited national revenue. “The Commission on Revenue Allocation notes that this allocation translates to 21.5 per cent,” she said. She also urged caution ahead of the 2027 General Election: “Past trends in ordinary revenue performance have shown significant revenue under-performance during election years.”
The governors, led by CoG Chairperson Muthomi Njuki, set out a list of costs they say the proposed allocation does not cover. The biggest is about Sh66 billion for functions newly delineated and transferred to counties, for which they say the money has remained with national ministries.
They also want Sh8.6 billion to pay Universal Health Coverage (UHC) workers who have been absorbed by counties on permanent and pensionable terms, at least Sh2 billion to honour collective bargaining agreements with health workers and avert strikes in an election year, and extra money to meet salary reviews approved by the Salaries and Remuneration Commission.
The council further sought funds for the handover of power after the polls. “Other priorities include funding for the assumption of office and transition processes, as well as adjustments to reflect revenue growth,” the council said.
Lawmakers have also raised concerns about how counties use the money they receive. Senate Finance Committee Chairperson Ali Roba pointed to “a worrying trend in most counties where there is a decline in development allocation”, while CRA Commissioner Fatuma Gedi said wastage, theft and duplication of projects in many counties must be dealt with if devolution is to benefit citizens.
Kakamega Senator Boni Khalwale expressed frustration that the Senate’s push for higher allocations had not borne fruit, saying, “It is very disappointing that despite Senators lobbying for the increase of funds allocated to counties,” the proposed share had not risen.
The CRA’s recommendations will feed into the Division of Revenue Bill, 2027, which Parliament will consider before the financial year begins in July 2027. The governors’ requests are not yet approved, and the final county allocation will be decided through the budget process and the two Houses of Parliament.
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