The National Assembly of Kenya has approved an allocation of Sh405 billion for county governments for the 2025/26 financial year. This budget includes additional funding aimed at supporting public services, increasing economic efficiency, and reducing living costs. Various government sectors also received specific allocations, laying the groundwork for future fiscal strategies.
The National Assembly of Kenya has approved a budget allocation of approximately Sh405 billion for county governments for the fiscal year 2025/26. This allocation, outlined in the Budget Policy Statement (BPS), also includes an additional Sh69.8 billion for county operations, to be incorporated into the County Government Additional Allocations Bill for the same fiscal year.
In setting the National Government’s budget ceiling at Sh2.5 trillion, the Executive is allocated Sh2.4 trillion while Parliament and the Judiciary receive Sh49.5 billion and Sh26.7 billion respectively. This budget also designates Sh7.9 billion for the Equalization Fund, with an extra Sh3.5 billion earmarked for its arrears.
Public participation initiatives within the budget are allocated Sh3 billion, and the Office of the Auditor General will receive Sh8.7 billion. These figures are essential for the preparation of Budget Estimates for the upcoming fiscal year.
The 2025 BPS outlines the Government’s strategic priorities, detailing the current economic situation and expectations for the medium-term fiscal outlook, aiming to clarify Kenya’s public finances and stimulate informed public discourse.
The National Treasury anticipates that the measures in the BPS will bolster economic efficiency, promote business growth, and decrease living costs, significantly enhancing the welfare of Kenyans.
The implementation of reforms will focus on minimizing debt vulnerability through a wider tax base and improved compliance. The emphasis will also be on optimizing public expenditure aimed at enhancing service delivery while prioritizing essential programs.
Moreover, Ministries, Departments, and Agencies (MDAs) are urged to critically examine their existing and upcoming programs and projects for funding. Sector Working Groups (SWGs) are tasked with cutting unnecessary expenses and focusing on initiatives that protect livelihoods and foster economic recovery, as stated in the BPS.
In conclusion, the approved allocation of Sh405 billion to county governments reflects a significant investment in local governance for the fiscal year 2025/26. The National Assembly’s decisions underscore a commitment to enhancing economic efficiency, improving public understanding of financial priorities, and focusing on high-priority expenditures for the welfare of Kenyans. A stringent fiscal approach aims to ensure sustainable economic growth and development moving forward.
Original Source: www.capitalfm.co.ke
