The Parliament has approved Sh387.42 billion for counties, marking a pivotal moment for regional development. This allocation, finalized last week after months of intense negotiation, highlights the government’s commitment to equitable resource distribution across the country. Nairobi and Marsabit emerge as the biggest beneficiaries in this revised budget, receiving the highest marginal increases among the 47 counties.
Background and Negotiations
Initially, Parliament had proposed an allocation of Sh400.1 billion for counties, which was subsequently vetoed by President William Ruto. The President, citing fiscal concerns and the withdrawal of the Finance Bill, 2024, recommended a lower allocation of Sh380 billion. This decision sparked a dispute between the bicameral legislature and the executive, leading to a mediation process that ultimately produced the current Sh387.42 billion allocation. The final figure represents a compromise, reflecting the push and pull between fiscal prudence and development priorities across Kenya.
The negotiations were marked by a tug-of-war over the equitable distribution of resources among the counties, with different regions presenting varied needs and priorities. The Senate’s rejection of the President’s proposal and its insistence on a higher allocation underscores the commitment of lawmakers to safeguarding county budgets, especially in light of the developmental challenges faced by different regions.
Key Winners: Nairobi and Marsabit
Nairobi County, led by Governor Johnson Sakaja, has emerged as the biggest winner in this financial round. The county received an additional Sh100 million, pushing its total allocation to Sh20.17 billion from last year’s Sh20.07 billion. This marginal increase highlights the capital’s growing development needs, ranging from infrastructure improvements to service delivery enhancements. Nairobi’s population density and its role as the economic hub of Kenya necessitate significant investment to address issues like traffic congestion, housing, and sanitation. The Sh100 million increment is seen as a step towards meeting these pressing needs.
Marsabit County, another major beneficiary, saw its allocation increase by Sh90 million to Sh7.59 billion from Sh7.50 billion. This increment reflects the region’s diverse development needs, including infrastructure projects to enhance accessibility and improve service delivery in remote areas. Marsabit faces unique challenges due to its vast arid and semi-arid landscapes, requiring specialized investments in water projects, education, and health services. The additional funds are expected to bolster these sectors and support sustainable development in the county.
Allocation to Other Counties
Kericho, Turkana, and Nakuru counties also saw significant increases in their allocations. Kericho received an additional Sh80 million, raising its budget to Sh6.78 billion from last year’s Sh6.70 billion. This increase is crucial for the county, which relies heavily on agriculture and tea production, to enhance agricultural productivity and support local farmers. Turkana and Nakuru counties, on the other hand, each saw a Sh70 million rise in their allocations, bringing their respective totals to Sh13.21 billion and Sh13.66 billion. These funds are aimed at addressing issues like infrastructure development, food security, and health services, reflecting the unique developmental needs of each region.
Counties that received a Sh60 million increment include Mandera, Bungoma, Kitui, and Kilifi. These counties are set to receive Sh11.69 billion, Sh11.17 billion, Sh10.88 billion, and Sh12.16 billion respectively. The additional funds are expected to enhance critical sectors such as education, health, and water supply, which are vital for human development in these regions. The allocation to Mandera, for instance, is particularly significant given its strategic location and the need for improved infrastructure to boost trade and movement across the region.
Smaller increments of Sh50 million were allocated to counties like Garissa, Homa Bay, Kisii, Machakos, Meru, Narok, Trans Nzoia, Uasin Gishu, and Wajir. These allocations are aimed at targeted interventions to support local economies, enhance social services, and foster development at the grassroots level. For instance, Uasin Gishu’s allocation of Sh8.47 billion will support agriculture, which is the backbone of its economy, while Meru’s Sh9.94 billion will focus on healthcare and education to improve the quality of life for its residents.
Conclusion
The approval of the Sh387 billion allocation for counties marks a significant milestone in Kenya’s devolved governance framework. It reflects the ongoing efforts to balance development needs across regions, recognizing the unique challenges and opportunities each county presents. As counties prepare to utilize these funds, the focus will be on translating these allocations into tangible benefits for the people. The challenge now lies in effective implementation, transparency, and accountability to ensure that the additional resources lead to meaningful improvements in service delivery and overall development across the country. Nairobi, Marsabit, and other counties that received substantial increases will be under scrutiny to demonstrate how these additional funds are utilized in addressing local needs and driving sustainable development.
