Timely Disbursement of Shareable Revenue to Counties
The Kenya Kwanza government promised to ensure that shareable revenue is transferred to counties in a timely and predictable manner and in accordance with the law.
As of April 2023, the National Treasury was yet to disburse Sh155.4 billion in equitable share to county governments even as the 2022/2023 financial year was fast coming to an end in June. Data from a Senate watchdog committee shows Treasury had released only Sh216.4 billion since July 1, 2022.
Further, as of July 2025, the National Treasury had not yet disbursed county funds, despite reports that the disbursements had been made.
County governments received their first equitable share transfers of the 2025/26 fiscal year in August, after going without any disbursements in July.
March 2026: The Senate Standing Committee on Finance and Budget and the Council of Governors (CoG) have reached a landmark consensus to lobby for a significant increase in the county equitable share of revenue for the 2026/27 Financial Year. This win-win agreement seeks to resolve a national pending bills crisis that has ballooned to Ksh458 billion nationally, and Ksh172 billion owed by counties.
In July 2026, Commission on Revenue Allocation (CRA) gazetted new standards for automating county own-source revenue. These took effect on 27 July 2026 and are intended to improve the reliability of county revenue collection, reporting and reconciliation.
On August 24th 2026, the Deputy President asserted, that the settlement of accumulated arrears for the FY2025/2026 and the disbursement of equitable share amounts to counties up to August demonstrated that the government had fulfilled its promise. However, this assertion does not align with the monthly disbursement requirement prescribed schedule set out in Section 17 (6) of the Public Finance Management Act.
