National Treasury Disburses Two Hundred Forty Billion Shillings to Counties as Nairobi Claims Largest Equitable Revenue Share

Treasury releases KSh 240.7 billion to Kenyan counties. Nairobi receives KSh 12.4B as National Treasury reports KSh 2.76T in total revenue.

By: AXL Media

Published: Mar 16, 2026, 7:48 AM EDT

Source: The information in this article was sourced from TUKO.co.ke

Mid-Year Milestone for Kenyan Devolved Funding

The National Treasury has officially detailed the exchequer issues for the current financial year, providing a transparent look at the capital flow to Kenya’s 47 decentralized units. Cabinet Secretary John Mbadi signed off on the official gazette notice, which covers the period up to February 27, 2026, confirming that KSh 240.7 billion has been moved to the counties. This figure accounts for roughly 58% of the total KSh 415 billion earmarked for the 2025/2026 period, according to the Treasury’s financial reporting.

Regional Disparities in Revenue Allocation

The distribution of the equitable share continues to reflect the diverse demographic and infrastructure needs of the various regions. Nairobi City County remains the primary beneficiary of the exchequer issues, securing KSh 12.42 billion to manage its high density urban requirements. In contrast, smaller or less populated regions such as Lamu received significantly lower amounts, with its disbursement totaling KSh 2.24 billion for the same period. These funds are vital for the continuous operation of devolved sectors, particularly in the management of local health facilities and agricultural projects.

Economic Pressures and National Revenue Shortfalls

While the disbursements to counties are proceeding, the broader national revenue picture reveals a challenging fiscal environment for the government. Total revenue collected by the end of February reached KSh 2.76 trillion, which is a considerable distance from the original full year estimate of KSh 4.43 trillion. Tax revenue contributed approximately KSh 1.52 trillion to the coffers, while the state relied heavily on domestic borrowing, which added KSh 870.11 billion to the total revenue pool to meet its various constitutional obligations.