Counties need more funds and prudent management

President William Ruto’s backing for an additional allocation of Sh65.9 billion to the 47 counties will, if endorsed, provide a significant financial boost to them. The devolved units have been struggling to meet their recurrent and development expenditure.

County governments face a severe crisis driven by budget delays, massive pending bills, and rising wage bills. The President wants the additional allocation considered by the National Treasury in the 2027/28 fiscal year.

The Intergovernmental Relations Technical Committee has, in collaboration with the Commission on Revenue Allocation, finalised the verification of the interim allocation to be submitted to the Treasury.

Should this be effected, it will be a significant financial relief for county governments, many of which face severe budget constraints, hampering their ability to pay salaries, manage recurrent costs and fund development projects.

The availability of extra funds will not just ease the cash crunch, but will also enable the streamlining of county operations. And it should accelerate stalled infrastructure and service delivery plans.

The county governments will receive Sh503.5 billion in the 2026/2027 financial year. Of this, Sh428 billion will be the equitable share of revenue, and Sh75.5 billion in conditional allocations. Though the equitable share increased from Sh415 billion in the previous financial year, the cash crisis persists.

The creation of the counties was meant to spur countrywide development. However, 13 years later, only a few manage to collect 100 per cent of their own revenue targets.

President Ruto is quite right that strengthening devolution is not just about transferring more money. It is about getting value in service delivery and development.

High recurrent expenditure, heavy spending on travel and administration, and bloated wage bills leave little or no funds for development. Widespread corruption and rampant financial mismanagement have heavily undermined the success of the counties. These must be fixed to realise the devolution dream of equitable development.

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