Senators and governors have reached a major agreement aimed at increasing county funding for the 2026/27 financial year while also addressing the long-standing issue of pending bills that have strained businesses and local economies.
The deal was struck during a meeting between the Senate Standing Committee on Finance and Budget and the Council of Governors (CoG), where both sides agreed to push for a higher equitable share allocation for counties.
The move is expected to ease financial pressure on devolved units and improve service delivery across the country.
A key component of the agreement is a structured plan to clear pending bills, which have heavily affected contractors and small and medium enterprises (SMEs).
Senators emphasized that any additional funds allocated to counties must prioritize settling these debts to stimulate economic activity and restore confidence among suppliers.
The leaders also agreed on a framework to integrate Universal Health Coverage (UHC) staff into county payrolls. This step is expected to provide job security for healthcare workers while maintaining the independence of county governments in managing their workforce.
Senator Ali Roba, who chairs the Finance and Budget Committee, stressed the importance of accountability, noting that increased funding must translate into tangible benefits for citizens.
He urged governors to commit to using the additional resources responsibly, especially in clearing outstanding obligations.
The Commission on Revenue Allocation (CRA) supported the push for increased funding, arguing that the current proposals are insufficient to meet rising costs, including salary increments and essential services.
The commission recommended a higher allocation to ensure counties can effectively carry out their functions.
Governors, led by CoG Chairperson Ahmed Abdullahi, also called for a review of how national funds are distributed, insisting that statutory allocations should not reduce the share meant for counties.
The agreement marks a significant step toward strengthening devolution, improving financial stability, and ensuring counties are better equipped to deliver services to Kenyans.
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