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

What the report says

Capital FM, republished by AllAfrica, reported from Nairobi on how Kenya’s county governments handle large annual budgets and what those funds are supposed to deliver. The piece said the 47 counties were allocated Sh405.1 billion as their equitable share for the 2025/26 financial year, with an additional Sh69.8 billion expected through conditional and unconditional grants. The article also cited a projected total county revenue of about Sh543.86 billion for the year, including own-source revenue.

The report explained that county income comes mainly from national transfers, grants and locally raised fees such as property rates, permits and market charges. It noted that counties remain heavily reliant on central government funding, while own-source collections have often fallen short of targets. In the first quarter of FY2025/26, counties reportedly collected Sh13.94 billion against a combined annual target of Sh93.89 billion. Controller of Budget Margaret Nyakang’o has warned that weak revenue collection and cash-flow problems can delay services and planned projects.

The article also outlined how county spending is split between recurrent costs, such as salaries and operations, and development spending on roads, water systems, buildings and other infrastructure. It said the law requires counties to devote at least 30 per cent of budgets to development over the medium term, while wage spending is capped at 35 per cent of revenue. The broader point, the report said, is that citizens should judge county budgets by whether they improve health care, roads, agriculture support and other local services, not just by the amount allocated on paper.