The National Assembly’s Budget and Appropriations Committee has scheduled public hearings on the Division of Revenue Bill, 2025, as part of efforts to ensure equitable allocation of national resources. The committee, chaired by Alego Usonga MP Samuel Atandi, convened on Wednesday to deliberate on the bill’s provisions ahead of the public consultations.
The projected total shareable revenue for the fiscal year (FY) 2025/26 stands at Sh2.8 trillion. According to the Parliamentary Budget Office (PBO), the proposed allocations are as follows: Sh2.4 trillion to the National Government, Sh405 billion to County Governments, and Sh10.6 billion to the Equalization Fund. This means the national government will receive 85.3 per cent of the total revenue, while counties will get 14.3 per cent. The county allocation reflects a 4.5 per cent increase from the previous year’s Sh387.4 billion.
The Division of Revenue Bill 2025 was published on March 12, 2025, and read for the first time in the National Assembly on March 14, 2025. It was subsequently referred to the Budget and Appropriations Committee for further review and to facilitate public participation in line with Standing Order 127(1) of the National Assembly’s Standing Orders.
The 2025 Budget Policy Statement, which was approved by the Cabinet last month, outlines a Sh4.2 trillion budget for FY 2025/26, equivalent to 22.1 per cent of the Gross Domestic Product (GDP). The breakdown of key expenditures includes Sh3.09 trillion for recurrent expenses, Sh725.1 billion for development, and Sh436.7 billion for county transfers. Additionally, the total county transfers could rise to Sh474.87 billion with supplementary funding through the County Governments’ Additional Allocation Bill.
The government’s fiscal strategy for 2025/26 aims to enhance financial stability, reduce public debt, and improve tax compliance. Key reforms include expanding the taxpayer base and strengthening public financial management. Economic recovery, largely driven by proactive policies and agricultural improvements, has seen GDP growth reach 5.6 per cent, with projections stabilizing at 5.3 per cent in the coming years.
The upcoming public hearings will provide stakeholders, including county representatives and the general public, an opportunity to express their views on revenue allocation. The Budget and Appropriations Committee remains committed to ensuring that resources are fairly distributed to enhance service delivery and national development.
