The County Governments Additional Allocations Bill, 2026
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Public Review
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Debate
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Executive
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Final
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Court Fines and Mineral Royalties Allocated to Counties
Clause 5(1) establishes unconditional allocations for county governments consisting of proceeds from court fines collected from the enforcement of county legislation, as well as a 20% share of mineral royalties pursuant to section 183(5)(b) of the Mining Act. These allocations are detailed in the First Schedule of the Bill.
Conditional Allocations for Key National Programs
Clause 5(2) outlines conditional allocations from the National Government's share of revenue. These fund specific projects, including the Community Health Promoters (CHP) project, construction of county headquarters, County Aggregation and Industrial Parks (CAIP), transition of Universal Health Coverage (UHC) workers to permanent terms, and administration of County Affordable Housing Committees under the Affordable Housing Act.
Development Partner Loans and Grants
Clause 5(3) details additional conditional allocations financed by loans and grants from international development partners. This includes funding from the International Development Association (IDA/World Bank), the German Development Bank (KfW), and the International Fund for Agricultural Development (IFAD) for programs such as climate resilience (FLLoCA), urban support (KUSP), and water sanitation projects.
Mandatory Financial Reporting and Oversight
Under Clause 6, the Cabinet Secretary for Finance must publish a monthly report on actual transfers to county governments by the 15th day of every subsequent month. Furthermore, county treasuries are obligated under Clause 8 to submit quarterly and annual reports to the National Treasury detailing expenditures, compliance with intergovernmental agreements, and any material challenges faced.
Bill No.
Bill No. 8 of 2026
Gazette No.
Supplement No. 61 of 2026
Background
The County Governments Additional Allocations Bill, 2026 is designed to facilitate the transfer of additional conditional and unconditional allocations from the Consolidated Fund to County Revenue Funds and special purpose accounts. This is done pursuant to Articles 190 and 202(2) of the Constitution for the financial year 2026/2027.
Key Amendments
While primarily a standalone annual allocation bill, Clause 10 provides a specific temporary exemption, stating that the requirements under sections 191A, 191B, 191C, 191D, and 191E of the Public Finance Management Act shall not apply with respect to conditional allocations under this Act in the financial year 2026/2027.
New Obligations
The Bill places several administrative and reporting obligations on public officers:
- Cabinet Secretary for Finance: Required to publish a monthly report of actual transfers of all additional allocations to county governments in the Gazette by the 15th day of each subsequent month (Clause 6).
- County Treasuries: Must ensure all conditional transfers are reflected in their books of accounts (Clause 7). They are also mandated to submit consolidated quarterly and annual reports to the National Treasury within the framework of the Public Finance Management Act, covering actual revenues received, expenditures, and compliance with intergovernmental agreements (Clause 8).
- Program Accounting Officers: Must conduct performance assessments for participating counties under specific grant frameworks, such as the Kenya Devolution Support Programme (KDSP) (Clause 7(a)).
Penalties
Clause 9 states that, notwithstanding the provisions of any other law, any serious or persistent non-compliance with the provisions of this Act shall constitute an offence of financial misconduct under the Public Finance Management Act.
Transitional Provisions
Allocations under this Act are specific to the 2026/2027 financial year. Additional funds allocated under the Act, except for those specifically exempted or subject to external agreement terms, must be integrated into the respective county governments' appropriation bills for the financial year.
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