COUNCIL OF GOVERNORS DEFENDS COUNTIES’ SHARE IN 2026/27 BUDGET TALKS

H.E. Governor FCPA Fernandes Barasa, OGW, in his capacity as Chair of Finance and Planning at the Council of Governors, today led deliberations with the Senate Standing Committee on Finance and Budget on the 2026 Budget Policy Statement (BPS) and the 2026 Medium-Term Debt Management Strategy (MTDS).

During the meeting, the Council raised concern over the continued breach of the 55% debt anchor and the rising cost of debt servicing, which now consumes 53% of ordinary revenue. The Council noted that Counties receive only 14% of ordinary revenue, despite not contributing directly to the national public debt. Members warned that this imbalance is straining service delivery at the county level.

The Council also highlighted the declining share of County transfers as a percentage of GDP, cautioning that this trend threatens the stability and long-term success of devolution.

To protect services across all the 47 Counties, the Council proposed an equitable share allocation of Ksh 534.96 billion for the 2026/27 financial year, inclusion of Universal Health Coverage (UHC) workers’ transition costs within the Division of Revenue, transfer of Ksh 65.97 billion linked to clearly assigned devolved functions, and urgent steps to restore debt sustainability.

The Council emphasized that for devolution to succeed, Counties must receive adequate, timely and predictable funding to continue delivering essential services and driving development across the country.