The Commission on Revenue Allocation Chairperson, Mary Wanyonyi Chebukati, has proposed increasing the amount of nationally raised revenue shared with Kenya’s 47 counties to Sh440.84 billion in the 2027/28 financial year.
Chebukati, while appearing before the Senate Committee on Finance and Budget, said that the allocation would increase counties’ equitable share by Sh12.84 billion from the Sh428 billion allocated in 2026/27.
The CRA has also proposed Sh2.798 trillion for the national government and Sh.10.25 billion for the Equalisation Fund from projected shareable revenue of Sh.3.249 trillion.
“The Commission recommends that Sh2,798.11 billion be allocated to the national government and Sh440.84 billion to county governments as equitable shares for the financial year 2027/28.”
The Commission said shareable revenue was projected to increase by Sh263.5 billion, or 8.12 percent, from Sh29857 trillion in 2026/27 to Sh.3.2492 trillion in 2027/28.
“The shareable revenue is projected to increase by 8.12 per cent from KSh 2,985.7 billion in the financial year 2026/27 to Sh3,249.2 billion in financial year 2027/28. This translates to an absolute revenue increment of Sh263.5 billion.”
However, the CRA warned that the revenue projections could be affected by the 2027 General Election, with previous election years showing weaker revenue performance.
“The ordinary revenue projection for the financial year 2027/28 is likely to be affected negatively by the slowed economic performance in the first quarter of the financial year due to the General Elections which are planned to be conducted on 10th August 2027.”
Actual ordinary revenue collection in 2025/26 stood at Sh2.5884 trillion, up from Sh.2.4202 trillion the previous year but below the original target of Sh2.7547 trillion.
The Commission said its recommendation was guided by the need to provide both levels of government with resources to perform their constitutional functions.
“The recommendation has taken into account the need to provide adequate resources for each level of government to finance functions assigned to them by the Fourth Schedule of the Constitution among other factors.”
Chebukati called for consultations with the Senate to reach agreement on the equitable sharing of revenue.
“As the Senate Committee which is mandated to determine equitable revenue allocation to the county governments, it is my hope that we can consult and agree on equitable share of revenue to both levels of government.”
The meeting also focused on funding for Universal Health Coverage workers.
The CRA said the Intergovernmental Budget and Economic Council and the Summit had resolved that funding for the workers should form part of counties’ equitable share from 2027/28.
“The IBEC and the SUMMIT in consultation with the county governments resolved that these funds be allocated as part of equitable share revenue to county governments in FY 2027/28,” Chebukati said.
The proposal would require a review of the Fourth Basis for revenue sharing among counties.
“For this to happen, the Fourth Basis for revenue sharing among county government will have to be reviewed. The Commission seeks for your guidance on the practicality of reviewing the Fourth Basis before April 2027,” she said.
The CRA has proposed Sh.8.864 billion for UHC workers in 2027/28, up from Sh8.605 billion in 2026/27.
Counties also face challenges in raising their own revenue. They collected Sh53.9 billion in the first nine months of 2025/26 against an annual target of Sh.100.13 billion.
The CRA’s recommendation is its sixteenth since the beginning of devolution in 2012/13. The Commission said the National Treasury had revised the budget calendar because of the August 2027 elections.
“For financial year 2027/28, the National Treasury has revised the budget calendar due to the General Elections that will take place in August 2027,” she added.