The County Allocation of Revenue Bill (Senate Bill No. 9 of 2025)

<!-- image --> ## REPUBLICOFKENYA ## PARLIAMENT ## SENATEBILLS (Bill No.9 of 2025) ## THE COUNTY ALLOCATION OF REVENUE BILL, 2025 (A Bill published in the Kenya Gazette Supplement No. 95 of 24h June, 2025 and passed by the Senate,with amendments,on 22ndJuly,2025.) <!-- image --> ## Clause - 1—Short title. - 2——Interpretation. - 3— Object. - 4—- Equitable allocation of county governments′ share of revenue. - 5———Budget ceilings for recurrent expenditure. - 6——Funding of transferred functions. - 7—Report on actual transfers. - 8—Books ofaccountstoreflectNational Government transfers. - 9—Financial misconduct. - 10—Applicable revenue -sharingformula. FIRSTSCHEDULE:ALLOCATIONOFEACHCOUNTYGOVERNMENTS' EQUITABLESHAREOFREVENUERAISEDNATIONALLY, FINANCIALYEAR2025/2026 SECONDSCHEDULE: GOVERNMENT BUDGETCEILINGS COUNTY OF RECURRENTEXPENDITUREINFINANCIALYEAR 2025/2026 ## THECOUNTYALLOCATIONOFREVENUEBILL,2025 ARRANGEMENTOFCLAUSES Short title. Interpretation. Cap. 428. Object. Equitable allocationof county governments' shareofrevenue. ## THECOUNTYALLOCATIONOFREVENUEBILL,2025 ## A Bill for ANACT of Parliament toprovide for the equitable allocation of revenue raised nationally among the county governments for the 2025/2026 financial year; the responsibilities of national and county governments pursuant to such allocation; and for connectedpurposes. ENACTED byParliament of Kenya, as follows- 1. This Act may be cited as the County Allocation of Revenue Act, 2025. 2. In this Act — "Cabinet Secretary" means the Cabinet Secretary responsible for matters relating to finance; and "revenue"" has the meaning assigned to it under section 2 of the Commission on Revenue Allocation Act. - 3.The object of this Act is to - - (a)provide,pursuant to Article 218(1)(b) of the Constitution,for theallocationof anequitableshareof revenue raised nationally among the county governments, in accordance with the resolution approved by Parliament under Article 217 of the Constitution for the financial year 2025/26; and - (b)facilitatethetransfer ofallocationsmadetocountiesunderthis Act from the Consolidated Fund to therespective County RevenueFunds. 4. (1) Each county governments' equitable share of revenue raised nationally, on the basis of the revenue sharing formula approved by Parliament in accordance with Article 217ofthe Constitution in respect ofthefinancialyear2025/26shallbe as set out in ColumnF oftheFirst Schedule. Cap 412A. Budget ceilings forrecurrent expenditure. Funding of transferred functions. Report on actual transfers. - (2) Each county government's allocation under subsection (1) shall be transferred totherespective CountyRevenueFund in accordance with apaymentschedule approved by theSenate andpublished in the Gazette by the Cabinet Secretary in accordance with section 17 of the PublicFinanceManagementAct. 2. governments for the financial year 2025/2026 shall be as set out in the Second Schedule. 6. (1) Where a county government has transferred a function to the National Government pursuant to Article 187 of the Constitution, the respective county executive in consultation with the National Governmentshalldeterminethecostofthetransferredfunctions. - (2) The respective county assembly shall appropriate such monies as may be required for the transferred function in accordance with the determinationmade under subsection (1) and the allocation shall not be less than the amount appropriated by the county assembly in the preceding financial year. 5. (3)The monies appropriated under subsection (l) shall be transferred totheNationalGovernment. 6. (4)A national government entity towhich a countygovernment function has beentransferred shall submit a quarterly report to the Senate and the respective county assembly on the status of the discharge ofthedevolvedfunction. - (5) The Auditor-General shall, no later than three months after the end of a financial year, prepare a special audit report on the financial andnon-financialperformance of an entitytowhichacounty government function has been transferred. - (6) The Auditor-General shall submit the report under subsection (5) to the Senate and the respective county assembly. 7. The Cabinet Secretary shall publish a monthly report on actual transfers of all allocations to county governments. | Books of accounts toreflect National Government transfers. | 8. (1) Each county treasury shall reflect all transfers by the National Government to the county governments in its books of accounts. (2) The estimates of revenue of each county shall separatelyreflect the total equitable revenue share under section 4 of this Act transferred totheCountyRevenueFund. | |--------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Cap. 412A. | (3) A county treasury shall as part of its consolidated quarterly and annual reports required under the Public Finance Management Act report on actual transfers received by the county government from the national government, up to the end of that quarter or year in the format prescribed by thePublicSectorAccountingStandardsBoard orin the absence of a format prescribed by theBoard,in theformat prescribed by theNational Treasury. | | Financial misconduct. | 9.Despite the provisions of any other law, any serious or persistent non-compliance with provisions of this Act constitutes an offence under | | Cap.412A | thePublicFinanceManagementAct. | | Applicable revenue-sharing formula. | 10.For the avoidanceof doubt the allocationof theequitableshare of revenue to county governments under section 4 of this Act shall be inaccordancewiththefourthdeterminationofthebasisofthedivision of revenue among counties approved by Parliament pursuant to Article 217(7)oftheConstitution. | ## (S.4(1) ## FIRSTSCHEDULE ## Allocation of Each County Government's Equitable Share of Revenue Raised Nationally in the FY 2025/26. | Total Equitable Share | F=B+C+E | 7,083,683,384 7,447,200,499 | | 11,838,054,666 7,956,564,058 | 5,515,146,712 | 6,077,441,672 8,877,784,676 | 8,646,376,063 5,631,357,298 | 8,894,254,886 | 13,674,848,56 7,178,668,356 | 13,071,817,986 12,813,396,770 | 6,151,661,892 | 9,819,721,768 | 8,902,026,938 | 11,503,907,837 9,078,699,643 | 6,104,082,008 | 3,857,621,205 | 10,179,132,681 8,976,335,654 | 12,265,064,993 | |------------------------------------------------------------------------------|-------------------|-------------------------------------|----------------|--------------------------------|-----------------|-------------------------------|-------------------------------|-----------------|-------------------------------|---------------------------------|-------------------------|-----------------------------|-----------------|--------------------------------|-----------------|-----------------------------|--------------------------------|------------------| | Additionalequitableshareabove Equitable Share Ksh.391.885(Ksh.23.115billion) | E | 399,810,161 432,078,744 | 667,381,067 | 441,628,476 | 316,748,026 | 335,878,174 587,337,311 | 476,095,263 336,183,445 | 549,241,276 | 694,345,246 440,203,054 | 778,121,312 643,553,294 | 330,722,506 513,886,080 | 496,698,365 | 617,939,738 | 453,288,040 345,380,610 | 231,523,815 | 581,908,741 | 479,027,382 | 574,446,433 | | Allocation | Ratio | 1.72966 1.86926 | 2.88722 | 1.91057 | 1.37031 | 1.45307 2.54094 | 2.05968 1.45440 | 2.37612 | 3.00387 1.90440 | 3.36630 2.78414 1.43077 | 2.22317 | 2.14881 | 2.67333 | 1.96101 .49418 | .00162 | 2.51745 | 2.07237 | 2.48517 | | Affirmative Action Ksh.4.46 billion Allocation | C | | | | 371,666,667 | 371,666,667 | 371,666,667 | | | | 371,666,667 | | | | 371,666,667 | 371,666,667 | | | | BaselineAllocationofKsh.387.425 Allocationfactor | Equitable share B | 6,683,873,223 7,015,121,755 1.72520 | 11,170,673,599 | 7,514,935,582 | 4,826,732,019 | 5,369,896,832 8,290,447,365 | 8,170,280,800 4,923,507,187 | 8,345,013,610 | 12,980,503,320 6,738,465,302 | 12,293,696,674 12,169,843,476 | 5,449,272,719 | 9,305,835,688 8,405,328,573 | 10,885,968,099 | 8,625,411,603 | 5,387,034,732 | 3,254,430,723 9,597,223,940 | 8,497,308,272 | 11,690,618,50 | | billion | A | 1.81070 | 2.88331 | 1.93971 | 1.24585 | 1.38605 2.13988 | 2.10887 | 1.27083 2.15397 | 3.35046 1.73930 | 3.17318 3.14121 | 1.40654 | 2.40197 2.16954 | 2.80983 | 2.22634 | 1.39047 | 0.84002 | 2.47718 2.19328 | 3.01752 | | County | | Baringo Bomet | Bungoma | Busia | Elgeyo/Marakwet | Garissa Embu | Homa Bay | | Kajiado Kakamega Kericho | Kiambu Kilifi | Kirinyaga Kisii | Kisumu | Kitui | Kwale | Laikipia | Machakos Lamu | Makueni | Mandera | | | | 2 | 3 | 4 | 5 | 6 | 8 | | 10 1 12 | 3 14 | 15 16 | 7 | 18 | 19 | 2 | 2 | 2 | 忆 | | Total Equitable Share | | F=B+C+E | 8,105,669,078 10,553,946,059 | | 8,883,939,719 | 8,383,385,281 7,969,464,876 | 21,417,128,397 | | 14,455,147,658 7,771,778,066 | 9,770,317,146 | 6,073,434,356 | 6,662,675,631 6,896,132,673 | 6,336,970,364 | 7,754,478,885 | 5,760,449,685 | 7,222,474,730 5,058,286,293 | | 7,991,120,837 | 13,892,577,371 | 8,977,014,770 | 6,008,751,224 10,507,580,683 | 7,002,426,008 | 415,000,000,000 | |---------------------------------------------------------------------------------------------------|----|-----------------|--------------------------------|-----------------|-----------------|-------------------------------|------------------|---------------|--------------------------------|-----------------|---------------------------|-------------------------------|-----------------|-----------------|-----------------|-------------------------------|---------------|-------------------------|--------------------|-----------------------------|--------------------------------|-----------------|-------------------| | Additional equitable share above Equitable Share Ksh.391.885 (Ksh.23.115billion) Allocation Ratio | E | 508,517,884 | 609,605,579 | 498,863,30 | 483,711,243 | 457,597,845 | ,238,416,440 | 788,150,012 | 425,706,959 | 528,456,627 | 341,779,695 354,487,312 3 | 377,523,418 | 342,075,188 | 453,005,454 | 322,644,636 | 397,755,896 287,111,314 | 450,619,915 | 679,294,051 504,615,809 | 344,162,910 | | 604,781,642 | 392,690,294 | 23,115,000,000 | | Additional equitable share above Equitable Share Ksh.391.885 (Ksh.23.115billion) Allocation Ratio | D | 2.19995 | 2.63727 | 2.15818 | 2.09263 | 1.97966 | 5.35763 | 3.40969 | 1.84169 | 2.28621 | 1.47861 1.53358 | .63324 | 1.47988 | 1.95979 | 1.39582 | 1.72077 1.24210 | 1.94947 | 2.93876 | 2.18307 1.48892 | 2.61640 | | 1.69885 | 100.00000 | | AffirmativeAction Ksh.4.46 billion Allocation | | | | | | | | | | 371,666,667 | 371,666,667 | | 371,666,667 | | 371,666,667 | 371,666,667 | | | | 371,666,667 | | | 4,460,000,000 | | BaselineAllocation of Ksh.387.425 Equitable share | | 7,597,151,194 B | 9,944,340,480 | 8,385,076,399 | 7,899,674,038 | 7,511,867,031 20,178,711,957 | 13,666,997,646 | 7,346,071,107 | 9,241,860,519 | 5,359,987,994 | 5,936,521,652 | 6,518,609,255 | 5,623,228,509 | 7,301,473,431 | 5,066,138,383 | 6,824,718,834 4,399,08,312 | 7,540,500,922 | 13,213,283,30 | 8,472,398,961 | 5,292,921,648 9,902,799,041 | | 6,609,735,714 | 387,425,000,000 | | Allocationfactor billion | | 1.96093 | 2.56678 | 2.16431 2.03902 | 1.93892 | 5.20842 | 3.52765 | 1.89613 | 2.38546 | 1.38349 | 1.53230 | .68255 | .45144 | .88462 | 1.30764 | 1.76156 1.13558 | 1.94631 | 3.41054 | 2.18685 | 1.36618 | 2.55606 | 1.70607 | 100 | | County | | Marsabit | Meru | Migori | Mombasa | Nairobi City Murang'a | Nakuru | Nandi | Narok | Nyamira | Nyandarua | Nyeri | Samburu | Siaya | Taita/Taveta | TanaRiver Tharaka-Nithi | Trans Nzoia | Turkana | Uasin Gishu Vihiga | Wajir | | WestPokot | Total | | | | 25 | | 2 8 | | 30 | 3 | 3 | 3 | | 5 | 6 | 3 | 3 | 3 | 4 | 24 | 4 | 5 | 46 | | 4 | | ## SECONDSCHEDULE (S.5) | County Government Budget Ceilings on Recurrent Expenditure in Financial Year 2025/26(Figures in Kenya Shillings) | County Government Budget Ceilings on Recurrent Expenditure in Financial Year 2025/26(Figures in Kenya Shillings) | County Government Budget Ceilings on Recurrent Expenditure in Financial Year 2025/26(Figures in Kenya Shillings) | County Government Budget Ceilings on Recurrent Expenditure in Financial Year 2025/26(Figures in Kenya Shillings) | County Government Budget Ceilings on Recurrent Expenditure in Financial Year 2025/26(Figures in Kenya Shillings) | |--------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------| | | | CountyAssemblyCeilings | CountyAssemblyCeilings | CountyExecutiveCeilings | | | COUNTY | FY2024/25 FY2025/26 | FY 2024/25 | FY 2025/26 | | 1 | Baringo | 757,858,506 847,469,122 | 811,330,131 | 496,161,163 | | 2 | Bomet | 677,847,307 755,816,719 | 675,271,762 | 468,730,626 | | 3 | Bungoma | 1,019,575,196 1,074,221,694 | 794,269,934 | 562,059,982 | | 4 | Busia | 804,254,206 859,603,045 | 740,954,156 | 514,728,802 | | 5 | Elgeyo/Marakwet | 642,494,863 682,127,598 | 682,571,452 | 445,655,740 | | 6 | Embu | 612,356,235 653,997,909 | 599,617,223 | 445,585,855 | | 7 | Garissa | 805,632,232 1,010,212,868 | 693,214,915 | 510,888,235 | | 8 | Homa bay | 865,455,765 901,349,007 | 807,946,650 | 538,863,664 | | 9 | Isiolo | 455,851,471 571,957,767 | 483,811,987 | 376,492,992 | | 10 | Kajiado | 739,100,667 797,493,878 | 705,785,753 | 459,200,063 | | 11 | Kakamega | 1,277,560,747 1,440,150,864 | 954,360,037 | 631,900,264 | | 12 | Kericho | 753,482,865 801,439,308 | 742,119,652 | 491,924,215 | | 13 | Kiambu | 1,122,733,276 1,332,680,576 | 937,949,817 | 642,094,266 | | 14 | Kilifi | 811,428,332 871,651,828 | 732,390,410 | 528,153,096 | | 15 | Kirinyaga | 626,637,101 667,134,062 | 591,357,406 | 436,378,706 | | 16 | Kisii | 994,072,293 1,051,143,180 | 842,938,395 | 569,351,784 | | 17 | Kisumu | 862,083,652 993,261,872 | 720,990,566 | 522,102,171 | | 18 | Kitui | 946,077,555 1,025,218,850 | 1,034,274,047 | 556,906,939 | | 19 | Kwale | 625,406,505 667,152,528 | 561,039,626 | 447,387,205 | | 20 | Laikipia | 477,594,112 511,501,082 | 543,968,003 | 406,459,778 | | 21 | Lamu | 466,864,730 502,735,064 | 439,219,777 | 373,334,857 | | 22 | Machakos | 924,156,126 957,194,136 | 817,384,477 | 540,775,483 | | 23 | Makueni | 780,912,038 964,631,315 | 772,648,310 | 494,768,774 | | 24 | Mandera | 825,043,653 917,936,058 | 709,410,958 | 511,948,091 | | 25 | Marsabit | 666,740,178 741,494,088 | 620,635,223 | 458,101,332 | | 26 | Meru | 991,451,371 1,033,230,263 | 1,046,885,894 | 565,023,558 | | 27 | Migori | 907,920,737 936,954,113 | 803,308,177 | 538,507,125 | | 28 | Mombasa | 700,845,894 862,807,953 | 550,949,872 | 497,268,190 | | 29 | Murang'a | 755,814,834 813,710,947 | 822,212,796 | 515,207,988 | | 30 | Nairobi City | 1,596,625,912 1,603,909,510 | 924,648,890 | 775,756,999 | | 31 | Nakuru | 1,034,293,969 1,121,659,233 | 949,692,125 | 622,626,699 | | 32 | Nandi | 727,658,319 811,140,379 | 829,614,196 | 492,132,433 | | 33 | Narok | 834,927,075 878,624,509 | 715,936,269 | 499,621,001 | | 34 | Nyamira | 650,614,404 689,414,409 | 584,106,355 | 444,949,706 | | 35 | Nyandarua | 706,936,676 758,345,693 | 683,959,845 | 469,042,680 | | 36 | Nyeri | 710,551,514 760,288,009 | 779,895,747 | 492,365,209 | | 37 | Samburu | 569,616,860 | 611,274,116 | 400,557,424 | | 38 | Siaya | 557,171,977 710,085,117 759,893,500 | 701,924,604 | 491,970,700 | | 39 | Taita/Taveta | 635,498,816 706,797,720 | 567,140,475 | 450,325,811 | | 40 | Tana River | 605,987,033 710,218,891 | 558,967,389 | 422,272,274 | | 41 | Tharaka-Nithi | 485,355,131 508,533,605 | 561,403,884 | 404,731,372 | | 42 | Trans Nzoia | 636,754,015 | 664,759,854 | 557,198,937 | 474,454,626 | |------|---------------|----------------|----------------|----------------|----------------| | 43 | Turkana | 770,739,999 | 863,842,883 | 704,903,707 | 510,888,235 | | 44 | Uasin Gishu | 727,164,370 | 887,273,308 | 623,694,943 | 498,842,007 | | 45 | Vihiga | 659,816,891 | 703,918,304 | 628,658,777 | 467,917,374 | | 46 | Wajir | 784,444,072 | 992,853,943 | 791,932,190 | 502,524,835 | | 47 | WestPokot | 637,364,488 | 699,024,354 | 743,044,332 | 447,670,353 | | | Total | 36,369,242,225 | 39,936,392,660 | 33,756,814,187 | 23,414,610,682 | I certify that this printed impression is a true copy of the Bill as passed by the Senate on Tuesday, 22nd July, 2025. <!-- image --> Endorsed for presentation to the National Assembly in accordance with the provisions of standing order161(1) oftheSenateStandingOrders. SpeakeroftheSenate <!-- image -->