Kenya’s 47 county governments have rejected a proposed KSh440.8 billion allocation for the 2027/2028 financial year, demanding at least KSh100 billion more to meet rising wage bills, healthcare costs and expenses linked to devolved functions.
The Council of Governors (CoG), led by chairperson Muthomi Njuki, says the proposed allocation by the Commission on Revenue Allocation (CRA) does not adequately reflect the financial obligations counties are expected to meet as they deliver essential services to residents.
The dispute has intensified as the country prepares for the next budget cycle, with governors insisting that the national government must provide sufficient resources to match the responsibilities assigned to devolved units.
The CRA had recommended KSh440.84 billion in equitable share revenue for counties in 2027/2028, representing an increase of KSh12.84 billion from the KSh428 billion allocated in the current financial year.
However, governors argue that the proposed increase falls short of their actual expenditure requirements and could strain county budgets, particularly in healthcare and staff compensation.
Governors List Billions in Additional Funding Needs
Among the major demands presented by the Council of Governors is KSh65.7 billion to finance functions transferred or assigned to county governments but whose corresponding resources, according to the governors, remain with national government ministries.
The governors have also outlined the following funding requirements:
KSh8.6 billion to pay Universal Health Coverage (UHC) workers absorbed by counties on permanent and pensionable terms.
KSh15.2 billion to cater for salary adjustments arising from reviews by the Salaries and Remuneration Commission (SRC).
At least KSh2 billion to implement collective bargaining agreements for health workers, including allowances and other negotiated benefits.
The additional demands total approximately KSh91.5 billion, excluding other transition-related expenses that have not been fully quantified.
The Council has separately called for an increase of at least KSh100 billion in the overall county allocation.
The governors say the funding gaps could undermine their ability to pay workers, maintain healthcare services and implement development projects if the additional resources are not factored into the next budget.
