Senate Committee Adopts Sh71.1 Billion County Allocations Disbursement Report

The Senate Standing Committee on Finance and Budget has approved a report outlining the disbursement of Sh71.1 billion in additional allocations to Kenya's county governments for the 2026/2027 financial year. The report includes corrections to figures for five counties, focusing on five key areas: universal health coverage, community health promoters, county headquarters, affordable housing, and development partner grants.

During a meeting at Parliament Buildings, the committee expressed concerns over the division of some allocations into smaller instalments, particularly in Embu County, where court fines were slated for disbursement in two separate payments of Sh1,500 each. Senators also pointed to revenue shortfalls, gaps in tax collection, and low court fines, arguing that the collected amounts from minor violations, such as illegal construction, were insufficient to act as deterrents.

The committee noted that both unconditional and conditional allocations under the Second Schedule were closely tied to national government revenue performance, meaning any shortfall could impact disbursement targets. Members questioned the practicality of splitting certain allocations into two tranches when the resulting payments were too small to support meaningful expenditure.

The report also highlighted the discrepancy between total development partner allocations and the funds currently scheduled for release, with only a fraction of the Sh56.4 billion in development partner allocations already lined up for disbursement. Mathematical and data errors in allocation figures for Isiolo, Lamu, Tana River, Nyandarua, and Tharaka Nithi counties were identified, and the committee recommended that the Senate approve the disbursement schedules only after correcting these errors.

Under the Third Schedule, the committee proposed that Tana River County’s total allocation and disbursement instalments be adjusted, with the two instalments currently scheduled for November 15, 2026, and February 15, 2027, revised to Sh252,835,307 each. The committee emphasized the need for the National Treasury to adhere strictly to the cash disbursement schedules to ensure the timely delivery of public services.

Despite opposition from Kakamega Senator Boni Khalwale, who questioned the accuracy and fairness of some figures, the committee concluded its deliberations and adopted the report, with Khalwale's formal objections recorded. The report will now be presented to the Senate for debate and consideration before the House reaches a final decision on the proposed disbursement schedules.