County billions: Tracking the journey from allocation to service delivery

Every year, billions of shillings flow from Kenya's national government to its forty-seven counties to fund various services, including healthcare, infrastructure, and education. The funds are allocated according to a complex formula that takes into account factors such as population size, poverty levels, geographical size, and income distance. This formula is designed to ensure that larger counties and those with greater needs receive a proportionate share of the funds.

However, the process of allocating and delivering funds to county governments is not straightforward. While counties are allocated Sh415 billion as an equitable share of the nationally raised revenue, this is just one component of their overall budget. Counties also receive additional conditional allocations and money they expect to raise themselves through own-source revenue.

The total approved county budgets for the 2025/26 financial year amounted to Sh603.72 billion, with Sh217.80 billion (36%) allocated for development and Sh385.92 billion (64%) for recurrent expenditure.

One of the main challenges in implementing county budgets is the distinction between recurrent and development spending. Recurrent expenditure covers the day-to-day running of government, including salaries, utilities, and maintenance, while development expenditure funds projects intended to create or improve infrastructure and other assets. For 2025/26, counties collectively budgeted 64% for recurrent expenditure and 36% for development, with the latter exceeding the statutory minimum of 30%.

To illustrate the allocation process, let's consider Turkana County. With a budget of Sh17.56 billion, the county allocated 63.34% (Sh11.12 billion) to recurrent expenditure, which includes salaries for healthcare workers, engineers, and other staff. The remaining 36.66% (Sh6.44 billion) was allocated to development, with Sh5.81 billion (36.66%) specifically earmarked for personnel emoluments.

This means that only a portion of the total budget is available for visible investments such as new roads, water projects, and health facilities.

Healthcare is a critical area where county budgets are closely scrutinized by the public. County governments are responsible for delivering healthcare services, including hospitals, health centers, and dispensaries. According to historical spending data, counties on average allocate around 25.3% of their resources to health and 8% to agriculture, rural, and urban development. However, the actual implementation of these allocations can vary significantly.

For example, in Makueni County, Sh2.11 million was allocated for the construction and equipping of a laboratory at Kathonzweni Health Centre. By December 31, 2025, the county had spent Sh1.96 million, representing 93% of the allocated amount, and the project was recorded as complete. This example demonstrates how a county-wide health allocation can be followed to a specific health project, highlighting the difference between the intended allocation and the actual implementation.

In summary, while the national government allocates billions of shillings to Kenya's counties through a complex formula, the actual delivery of services depends on how each county decides to spend its share of the budget. The balance between recurrent and development spending, as well as the prioritization of specific projects, plays a crucial role in determining the quality and accessibility of services for county residents.