Kenya: Following the County Shilling - From Budget to Service Delivery

What the report says

Nairobi-based Capital FM, republished by AllAfrica, published an explainer on 29 September 2026 examining how Kenya’s 47 county governments raise and spend public money. The piece says counties oversee hundreds of billions of shillings each year for services such as hospitals, roads, water systems, agricultural support and local markets, but that budgets remain difficult for many residents to follow from approval to actual delivery.

The report highlights the main funding streams for county budgets: the equitable share from nationally raised revenue, conditional and unconditional grants, and own-source revenue from local fees and charges. For the 2025/26 year, counties were allocated Sh405.1 billion as equitable share and another Sh69.8 billion in additional transfers, while the 2026 Economic Survey projected total county revenue at about Sh543.86 billion. The article says counties still rely heavily on national transfers, and that own-source revenue has often fallen short of targets.

It also explains how spending is typically divided between recurrent costs, such as salaries and operations, and development spending for projects and infrastructure. The report notes that Kenyan public finance rules require counties to direct at least 30 per cent of spending to development over time, while wage-related spending is capped at 35 per cent of revenue. Controller of Budget Margaret Nyakang'o is cited warning that weak revenue collection, manual payroll systems and delayed Treasury disbursements can hinder service delivery.

The article adds that public participation and budget transparency remain important for citizens trying to assess whether approved budgets translate into medicines, roads, water projects and other visible benefits.