The National Treasury has released the draft Division of Revenue Bill for the 2026/27 financial year, proposing a record Sh420 billion equitable share for counties. While the figure represents a Sh13 billion increase from the current year, it has already set the stage for a new battle between the Executive and the Council of Governors (CoG).

Treasury CS John Mbadi termed the allocation "generous," noting it equates to 21.87% of the last audited accounts—well above the constitutional minimum of 15%. However, Governors are demanding at least Sh450 billion, citing the soaring cost of healthcare and the devolution of new functions.

Winners and Losers

Under the proposed formula, Nairobi City County retains its crown as the biggest beneficiary, set to receive Sh21.1 billion. The allocation reflects the capital’s population density and service demand. Other big winners include:

• Nakuru: Sh14.3 billion
• Turkana: Sh13.8 billion (boosted by the land mass factor)
• Kakamega: Sh13.6 billion
• Kiambu: Sh12.9 billion

On the flip side, smaller counties like Lamu (Sh3.4 billion) and Tharaka Nithi (Sh4.6 billion) will have to stretch every shilling. The disparity continues to fuel the debate on the "One Man, One Vote, One Shilling" formula advocated by Mount Kenya leaders.

The Liquidity Crunch

While the numbers look good on paper, the elephant in the room is cash flow. Counties are currently grappling with three months of disbursement arrears. "A promise of Sh420 billion is useless if the money arrives in June," remarked CoG Chair Ahmed Abdullahi. "We need cash, not budget estimates."