Report On Consideration Of County Gvts Additional Allocations Bill (senate Bill No. 8 Of 2025)

DATE:

2 3 SEP 2025

THIRTEENTHPARLIAMENT-FOURTHSESSION-2025

REPORTOFTHEBUDGETANDAPPROPRIATIONSCOMMITTEE ONTHECOUNTYGOVERNMENTS'ADDITIONALALLOCATIONS BILL,2025(SENATEBILLNO.8OF 2025)

The Clerk's Chambers National Assembly Parliament Buildings NAIROBI

SEPTEMBER,2025

23/9

TABLE OFCONTENTS

| Chairperson'sForeword | |-------------------------------------------------------------| | Acknowledgements... | | 1.0Preface V | | 1.1EstablishmentoftheCommittee. IV | | 1.2MembershipoftheCommittee IV | | 1.3CommitteeSecretariat. VI | | 1.4 Technical Staff from theParliamentary Budget Office. Vi | | 2.0 Introduction.. | | 4.0CommitteeObservations 9 | | 5.0 Recommendation. 10 |

Chairperson's Foreword

The County Governments Additional Allocations Bill, 2025 was published on l8th June 2025 and introduced in theSenate on27th June 2025.TheSenate considered the Bill and passed it with amendments on 23rd July 2025. The Bill was then forwarded to the National Assembly for concurrence in line with Article Ilo(4) of the Constitution.It was read a first time in the National Assembly on July 31, 2025, and subsequently referred to the Budget and Appropriations Committee for consideration.

This Bill seeks to authorize the transfer ofboth conditional and unconditional additional from the National Government's share of revenue as well as from development partners. In considering the Bill, the Committee received submissions from the Intergovernmental Budget and Economic Council, the Council of Governors, the Ministry of Roads and Transport and the National Treasury.

The Bill proposes to allocate a total of Kshs. 93.53 billion as additional funds to county governments. This includes Ksh. 2.95 billion from Court Fines and 20 percent of Mineral Royalties as contained in the first schedule, Ksh.I0.o4 billion from the National Government's Share of Revenue contained in the second schedule, Ksh.23.63 billion from the Road Maintenance Fuel Levy Fund contained in the third schedule, and Ksh. 56.91 billion from loans and grants from development partners as contained in the fourth schedule.

CommitteeRecommendations

Having deliberated on the provisions of the Bill and taking into consideration the various submissions by stakeholders, the Committee recommends that the House approve the County Governments Additional Allocations Bill, 2025 (Senate Bill No.8 of 2025) and the Schedules contained in the Bill, with the following amendments:

• i. Construction of county Headquarters - Amending the second schedule to reflect the actual transfers to counties of Ksh. 449,000,000, netting out the Ksh.5,000,000 for operation expenses;

• i. County Aggregation of Industrial Parks (CAlPs)-Amending the second schedule to prioritize counties with outstanding balances from the National government and sharing the balance among counties that have made significant progress in terms of implementation of the projects.
• ili. Road Maintenance Levy Fund-Deletion of the third schedule that contains allocation to counties from the Road Maintenance Levy Fund.
• iv. Kenya Informal Settlement Improvement Project - Amending the allocation in the fourth schedule by reducing the funds to be sent to the counties under the World Bank (IDA) from KSh.800,000,000 to Ksh. I67,500,000 while increasing the allocation of AFD Funds from Ksh.I,oo0,0o0,0o0 to Ksh. 2,500,000,000.

4. Kenya Devolution Support Programme Il (KDsP Il)-Amending the fourth V. schedule to increase the allocation for level one grants to Ksh. 3,426,746,500 and reduce level two grants to Ksh. 11,378,253,500.

• vi. Schedules to the Bill -that the First, Second, and Third Schedules to this report betheSchedulesto the Bill.

Acknowledgements

The Budget and Appropriations Committee wishes to express gratitude to the Office of theSpeaker of the National Assembly,the Office of the Clerk of theNational Assembly and the Parliamentary Budget Office for the support extended in fulfilling this mandate of reviewing the County Governments Additional Allocations Bill, 2025.

On behalf of the Committee and pursuant to Standing Order 199(6), it is my pleasant duty and privilege to table the Report and recommend it to the House for adoption.

HON.SAMUELATANDI,M.P.

CHAIRPERSON,THEBUDGETANDAPPROPRIATIONSCOMMITTEE

I.0 Preface

I.IEstablishmentoftheCommittee

• I. Article 22l (4) of the Constitution and Section 7 of the Public Finance Management Act,20l2providefor theestablishmentofaCommitteeof theNational Assembly whose main role is to take the lead in budgetary oversight by the National Assembly. Pursuant to this constitutional provision, Standing Order 207 establishes the Budget and Appropriations Committee with specific mandates as follows:

2. i.Examine theDivision of RevenueBill.

• i. Investigate, inquire into, and report on all matters relating to the coordination, control, and monitoring of the national budget.

4. ili.Review the budget estimates and make recommendations to the House. 5. iv.Examine the Budget Policy Statement presented to the House.

• v. Examine bills related to the national budget, including appropriation bills; and
• vi. Evaluate tax estimates, economic and budgetary policies, and programmes with direct budget outlays.

1.2 Membershipof the Committee

2. Pursuant to Standing Order 207(2), the Budget and Appropriations Committee as currentlyconstitutedcomprises thefollowingHonourableMembers:

CHAIRPERSON

Hon. Atandi, Samuel Onunga, M.P. Alego Usonga Constituency ODMPARTY

VICECHAIRPERSON

Hon.(Dr.) Robert Pukose, CBS,M.P. Endebess Constituency UDA PARTY

MEMBERS

Hon. Chumel, Samwel Moroto,M.P. Kapenguria Constituency UDAPARTY

Hon.(Dr.) Adan Wehliye Keynan, CBS, M.P. EldasConstituency JUBILEEPARTY

Hon.Mulu,Makali,PhD,CBS,M.P. Kitui Central Constituency WDM-KENYA

Hon. Lekuton, Joseph, M.P. Laisamis Constituency UDMPARTY

Hon.Lesuuda,Josephine Naisula,OGW,M.P. Samburu West Constituency KANUPARTY

Hon. Robi, Mathias Nyamabe, M.P. Kuria West Constituency UDAPARTY

Hon. Muchira, Michael Mwangi, M.P. OlJorok Constituency UDAPARTY

Hon. Wangaya, Christopher Aseka, M.P. Khwisero Constituency ODMPARTY

Hon. (Dr.) Gogo, Lilian Achieng, M.P. Rangwe Constituency ODMPARTY

Hon. Guyo, Ali Wario, M.P. Garsen Constituency ODMPARTY

Hon.Murumba,John Chikati,PhD,M.P. Tongaren Constituency FORD-KENYA

Hon.Busia,Ruth Adhiambo Odinga,M.P. Kisumu County ODMPARTY

Hon.Molaya, Nyakundi Japheth, M.P. Kitutu Chache North Constituency UDAPARTY

Hon.Abdirahman Mohamed Abdi,M.P. Lafey Constituency JUBILEEPARTY

Hon. (Dr.) Mugo, Edwin Gichuki Mathioya Constituency UDAPARTY

Hon. Ochieng, David Ouma, M.P. Ugenya Constituency MDGPARTY

Hon. Ongili, Babu Owino Paul, M.P. Embakasi East Constituency ODMPARTY

Hon. Mwirigi, John Paul, M.P. Igembe South Constituency UDAPARTY

Hon.Mwakuwona,Danson Mwashako,M.P. Wundanyi Constituency WDM-Kenya

Hon. Wanjiku, John Njuguna, M.P. Kiambaa Constituency UDAPARTY

Hon. Masara,Peter Francis, M.P. Suna West Constituency ODMPARTY

Hon.Kitilai,OleNtutu,M.P Narok South INDEPENDENT

Sergon, Flowrence Jematiah, M.P. Baringo County UDA PARTY

Hon.Mutuse,Eckomas Mwengi,OGW,M.P. Kibwezi West Constituency MCCPARTY

Hon. Kagiri, Jane Wangechi, OGW, M.P. Lailkipia County UDAPARTY

I.3 Committee Secretariat

2. The Committee Secretariat is comprised of the following officers:

Mr. Danson Kachumbo Senior Fiscal Analyst/ Lead Clerk

| Ms. Sylvia Ocharo SeniorResearchOfficer/ClerkAssistant | Mr. Ringine Mutwiri Fiscal Analyst/ Clerk Assistant | |----------------------------------------------------------|-------------------------------------------------------| | Mr. Moses Mwariri Legal Counsel | FA. Loice Olesia Fiscal Analyst | | Mr. David Milimu Hansard Officer | Ms. Fridah Ngari Media Relations | | Mr. Simon Ouko Serjeant-at-arms | Mr. Nimrod Ochieng Audio Officer | | Mr. Jared Amara Office Assistant | |

I.4 Technical Staff from the Parliamentary Budget Office

3. The Committee received technical support from the following officers from the Parliamentary Budget Office.

FA.Dr.Martin Masinde

| Director, Parliamentary Budget Office | Director, Parliamentary Budget Office | |-----------------------------------------|-----------------------------------------| | Dr. Abel Nyagwachi | Ms. Julie Mwithiga | | Senior Fiscal Analyst | Senior Fiscal Analyst | | Mr. Onyango Adera Fiscal Analyst II | Mr. Kioko Kiminza Fiscal Analyst Il |

2.0Introduction

• 4.The County Governments Additional Allocations Bill,2025 was published on I8th June 2025andintroducedintheSenateon27tJune2025.TheSenateconsideredtheBill referred to theNationalAssemblyforconcurrence asper theprovisionsofArticle II0(4) of the Constitution. The bill was read a first time 31s July 2025 in the National Assembly, and referred to the Budget and Appropriations Committee for consideration.
• 5.TheBillprovidesforthetransferofconditionalandunconditionalallocationsfromthe National government's share of Revenue and from development partners to the county governmentsforthefinancialyear2025/26.
• 6.The additional allocation to counties is provided for under Article 202(2)of the Constitution, which provides that County governments may be given additional allocations from the national government's share of the revenue, either conditionally orunconditionally.Further,ArticleI90 of theConstitutionprovides for additional

7. Overall, the Bill proposes to allocate Kshs. 93.53 billion as additional allocations (conditional and unconditional) to County Governments. Out of this, Ksh.2.95 billion from Court Fines and 20% Share of Mineral Royalties (First Schedule), Ksh.10.04 billion from the National Government's Share of Revenue (Second Schedule).Ksh.23.63 billion from the Road Maintenance Fuel Levy Fund (Third Schedule) and Ksh.56.9l billion from Proceeds of Loans and Grants from Development Partners (Fourth Schedule).

Highlights of the County Government Additional Allocations Bill, 2025

FIRSTSCHEDULEALLOCATIONS

a.Courtfines

8. The Bill allocates a total of Kshs. Il.5 million for court fines collected by the Judiciary contained in the Schedule namely: Kiambu, Kisumu, Kitui, Laikipia, Machakos, Migori, Mombasa, Nairobi, Nakuru and Nyeri.

b.The 20% Share of Mineral Royalties

• The Bill proposes to allocate a total of Ksh.2.94 billion as the share of Mineral royalties due to specific counties for FY 2025/26. Ksh.2.94 billion comprises the allocation of Ksh.1.055 billion for FY 2024/25,which was not disbursed to the beneficiary counties due to non-budgetary allocation, and Ksh. 1.88 billion proposed for FY 2025/26. The proposed allocation is spread across thirty-two (32) counties, being the total sum of mineral royalties accrued for the counties up to FY 2023/24.
• I0. Counties with the highest allocation include: Kwale-Ksh.l.167 billion, Kilifi-950.1 million, and Kajiado-Ksh.660.2 million. Section 183(5) of the Mining Act (Cap. 306) stipulates that twenty percent (20%) of mineral royalties paid to the state shall accrue to the County Government where the mining operations occurred.

SECONDSCHEDULEALLOCATIONS

a.Settlement of Doctor's Salary Arrears

• I I.The Return-to-Work Formula agreement between the Government and the Kenya Medical Practitioners, Pharmacists, and Dental Union (KMPDU), necessitated that the doctors' outstanding salary arrears of Ksh.3.52 billion to be settled in two equal installmentsofKsh.1.759billioneachinFY2024/25andFY2025/26.TheBilltherefore allocates a total allocation of Ksh.l.759 billionfor the facilitation of payment of doctors

Basic Salary Arrears in the 47 counties.The allocation per county is based on the averagenumberofdoctorsinacountybetween2017to2024.

b.Community Health Promoters(CHPs)

• I2. The Community Health Promoters (CHPs) Programme is allocated a total of Ksh.3.234 billionintheFY2025/26.Theallocationissimilartowhatwasallocatedunder the programme in FY 2024/25 to be distributed across all 47 counties based on the number of Community Health Promoters (CHPs) in each County. The funds are intended to provide a monthly stipend of Ksh.5,oo0 per CHP, with the National Government contributing Ksh.2,500 and county governments matching the remaining Ksh.2,500. Nationwide, an estimated 107,831 CHPs will receive this compensation.
• I3. This implies that the higher the number of CHPs, the higher the allocation per county. Thenumberof CHPs acrossthe47countiesisestimatedtobe107,831,withthehighest numbers being concentrated in Nairobi, Kakamega, Kilifi, Makueni, Bungoma, Nakuru, andNandi-each above3,000CHPs.

c.Construction of CountyHeadquarters

• I4. The Bill allocates Ksh.454 million towards the construction of county headquarters offices for five (5) County Governments (lsiolo, Lamu, Tana River, Tharaka Nithi, and Nyandarua). The allocation follows the National Government's commitment to support these five counties, which did not inherit adequate facilities that could accommodate thenewadministrationattheonsetofdevolutionsinceFY2017/l8.

15. The FY 2025/26 approved budget estimates have made a provision of Ksh. 449 million to be directly applied to the construction works (the conditional transfer to counties) and five (5) counties.

d.County Aggregation and Industrial Parks(CAlPs) Programme

• I6. The Bill allocates a total of Kshs. 4.5 billion towards the construction of County Aggregation and Industrial Parks (CAIPs) to eighteen (l8) counties in FY 2025/26. The

money is shared equally with each beneficiary county receiving Ksh.250 million, and the county is expected to provide matching funds. The eighteen (l8) counties include; Kisi, Wajir, Baringo, Elgeyo Marakwet, Kajiado, Kericho, Kakamega, Kilifi, Kitui, Laikipia, Mandera, Narok, Nyandarua, Nyeri, Taita Taveta, Tana River, Tharaka Nithi and Vihiga.

e.0.5percentHousingLevyFund

• I7. The Bill allocates Ksh.93.4 million towards the county rural and urban affordable housing committees in accordance with Section I l(4)(c) of the Affordable Housing Act. The law mandates the Board to allocate outof theFund not less thanpoint fivepercent
• I8. The Act provides that O.5 percent of the collected funds should be transferred to counties, and the State Department for Housing and Urban Development, in allocatingthefundsto the counties.Basedonthecriteria,the allocation is determined from the Affordable Housing Board's Audited Financial Accounts of the Previous Financial Year, and 0.5 percent is applied to actual collections. The rationale for sharing the amount equally was based on the fact that the roles played by all county committees aresimilar.
• I9. Based on this criterion, the Ksh. 93.4 million is equivalent to 0.5 percent of Ksh.18.68 billion, which is the actual receipts from the Housing Levy for FY 2023/24. The amount is shared equally among the 47 counties, with each receiving Ksh.1.99 million. The money will be used to cover the recurrent expenses of the County Rural and Urban AffordableHousingCommittee.

THIRDSCHEDULEALLOCATIONS

a.Road Maintenance Levy Fuel (RMLF)

• 20.The Bill allocates Ksh.23.64 billionfrom the Road MaintenanceLevy Fund tocounties. This amount consists of: Ksh.10.522 billion for FY 2024/25 as proposed in the draft CGAAB,2024, and Ksh.13.12 billion proposed allocation for FY 2025/26.
• 21.The Ksh.13.12 billion allocation for FY 2025/26 was calculated by summing the total proposed budgetary allocations to road agencies (KeNHA, KURA, KeRRA, KWS, and KRB) and the Road Annuity Fund for FY 2025/26, which amounted to Ksh.87.44 billion (as per the tabled Budget), and then applying a I5% share of this total to determine the indicative allocation for counties. However, it is noted that the estimated receipts from the RMLF for FY 2025/26 is Ksh.70.22 billion, notably, the Annuity Fund is estimated to beKsh.14.38billion.

22. The sharing criteria of the funds per county is calculated based on weights of different factors: Length of Road, Climate/Rainfall, Rural Access Index (RAl), soil type distribution & Equal Share, which are eventually summed up to give an allocation index for each county.

FOURTHSCHEDULEALLOCATIONS

• 23.Thefourthschedule of theBill allocatesKsh.56.9lbillionfrom theproceeds of loans and grants from development partners.The funds are divided among 47 counties and action, urban development, and healthcare:-
• i.Aquaculture Business Development Programme (ABDP) with an allocation of Ksh.200 million to be shared among fifteen (15) beneficiary counties. The project is funded by the International Fund for Agricultural Development (IFAD) and aims to improve incomes, food security, and

• ii. IDA (World Bank) Credit (Financing Locally Led Climate Action Program, FLLoCA) CCIS Grant allocated Ksh-121 million shared among seven counties, with Mombasa and Nairobi meant to receive the highest allocationofKsh.33millioneach,and theotherfivecountiesKsh.IImillion each.
• ili. IDA (World Bank) Credit (Financing Locally Led Climate Action Program, FLLoCA) CCRI Grant allocated Ksh.6.2 billion, going towards funding climate change activities across 45 counties. The main action through the County Climate Change Fund (CCCF), and mainstream climate considerations across all county functions.
• iv. KFW (German Financial Cooperation) Credit Co- Financing of Financing Locally- Led Climate Action Program, (FLLoCA) CCRIgrant of Ksh.1.2 billion for the I6 counties. The programme funded by the KfW (German Financial Cooperation) is similar to the World Bank programme on climate change, and it aims to increase the support of County Climate Action Plans (CCAPs) and increase local investment into the County Climate ChangeFund.
• V. Food Systems Resilience Project (FSRP) funded by the IDA (World Bank) Credit by Ksh.3.2 billion. The project will be implemented in thirteen counties aimed at enhancing food security and strengthening the resilience of food systems. Each county will receive Ksh.246.2 million from the donor and contribute Ksh.5 million.

5. vi.[ Drought Resilience Programme in Northern Kenya (DRPNK) funded by the German Development Bank (KfW) by Ksh.l.28 billionto be shared betweenMarsabit and Turkana Counties,with an allocation of Ksh. 580 million and Ksh.696.7 million, respectively. The

2

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programme'sobjectiveistoenhancedroughtresilienceandclimatechange andrehabilitatingrelevantinfrastructureinselectedareasofMarsabitand Turkana counties.

• vi.Second Kenya Devolution Support Program (KDSP Il) Institutional Grant (Level I Grant) allocated Ksh.1.762 billion, going to all the 47counties,witheachbenefiting withKsh.37.5 million.The IDAWorld Bank-funded project aims to incentivize county governments to establish core governance and institutional systems for effective public resource management.
• vili. Second Kenya Devolution Support Program (KDSP Il) - Service Delivery and Investment Grant (Level 2) that allocates Ksh.13 billion fundedby the IDA-World Bank across the 47counties.The grant aims to finance county-level infrastructure and service delivery investments, while incentivizing performance improvement. The investments must align with each county's County Integrated Development Plan (CiDP) and County Annual Development Plan (CADP).
• ix. Kenya Livestock Commercialization Project (KELCOP) with an allocationofKsh.634.5millionfromtheInternationalFundfor Agricultural Development (IFAD) for sharing among ten (l0) development objective is to increase incomes for Il0,0o0 poor livestock andpastoralist households in an environmentally sustainable manner within theselectedcounties.
• X. KenyaUrbanSupportProject(KUsP)-UrbanInstitutional Grant (UlG)programme supported byIDA WorldBankCredit amounting to Ksh.l.3 billion. The grant aims to support urban development planning, establishment, and operationalization of urban

• institutional frameworks,such as charters,boards,and administrations,and initial preparations for urban infrastructure investments across 45 counties.
• xi. Second Kenya Urban Support Project (KUSPll)- Urban from IDA -World Bank credit. The programme will be implemented in 45 counties, and the money will go to actual infrastructure investments in urban areas through urban boards and other administrators.
• xi. Kenya Water, Sanitation and Hygiene (K-WASH) Program of Ksh.4.6 billion. The project seeks to expand access to water and sanitation across I9 counties classified as either rural or ASAL areas in Kenya. Overall, K-WASH aims to enhance lives and health by developing and managing sustainable Water, Sanitation, and Hygiene (WASH) services in these counties.
• xiii. National Agricultural Value Chain Development Project (NAVCDP)-fundedthroughIDA-WorldBankbyKsh.7.7billion. for targeted farmers in selected value chains in 34 counties. Beneficiary Ksh.5millioneach.
• xiv. DANiDA Grant -Primary Health Care in Devolved Context (PHDC) Programme of Ksh.5l0 million shared in all the 47 Ss a particularly Reproductive, Maternal, Newborn, Child, and Adolescent Health (RMNCAH) services at the county level in level I, 2 & 3 facilities.
• XV. Water and Sanitation Development Project (WSDP) through IDA World Bank support of Ksh.3 billion. The project is designed to improvewater andsanitationcoverageinsix select coastaland Northeastern counties. The county with the highest allocation is Kilifi with an allocation of Ksh.900 million. The other beneficiary counties are; Wajir-

Ksh.550million,Mombasa-Ksh.500 million,Taita Taveta-Ksh.450million, Kwale-Ksh.450million, and Garissa-Ksh. 150million.

• xvi. Kenya Informal Settlement Improvement Project Il (KiSIP-lIl) of Ksh.I billion from the AFD-France. The project will be implemented in seven counties and aims to support the development of sustainable infrastructure in informal settlements as part of slum upgrading efforts.
• xvii. Kenya Informal Settlement Improvement Project Il (KiSiPIl) fundedbytheIDA-WorldBanktoatuneofKsh.840million.The project targets Il counties and is designed to support the development of sustainableinfrastructureinselectedinformalsettlements.

4.0CommitteeObservations

• 24。The Committeeconsidered theadditionalallocations as containedintheBilland observed the following:
• i. The Bill allocates Ksh. 2.93 billion to ten specific counties, equivalent to the 20% share of mineral royalties accumulated since 20l6. Previously, these funds could notbedisbursedduetothelackoftransferframeworksandwereheldinthe ConsolidatedFund.Tofacilitate thewithdrawalfrom the Consolidated Fund,and disbursement of these funds to the beneficiary counties, the allocation has been included in the budget.
• ii.While the Bill allocates Ksh 454 million for County Headquarters construction, the FY 2025/26 budget designates Ksh. 449 million as a direct conditional transfer for the construction works and Ksh.5 million for operational expenses of the state department.
• ili.The allocation of Ksh. 4.5 billion to eighteen counties under the CAlPs Programme demonstrates a possible misalignment with implementation progress. WWhile certain counties have achieved significant milestones in project execution, they have not

been prioritised for funding in FY 2025/26. Conversely, some counties still at the initial stages of implementation are being considered for funding.

• iv. The Bill provides for an allocation of Ksh. 23.64 billion from the Road Maintenance Levy Fund (RMLF) to support county road maintenance. On 25th July 2025, the o o s ss judgement, which had previously invalidated the legislation regarding the establishment and distribution of the RMLF. The Court of Appeal granted Parliament a I2-month period to align road funding and classification laws with the devolved system of governance, thereby preserving the status quo.

2. V。 The Bill provides for allocations from the proceeds of loans and grants from development partners totalling Ksh. 56.91 billion. Nonetheless, donor-funded projectshavehistorically faced implementation delays attributed tolate or deadlines, unmet conditions, and the impact of currency fluctuations.

5.0Recommendation

25. Having deliberated on the provisions of the Bill, the Committee recommends that the House approve the County Governments Additional Allocations Bill, 2025 (Senate Bill No.8 of 2025) and the Schedules contained in the Bill, with the following amendments:

• i. Construction of county Headquarters - Amending the second schedule to reflect the actual transfers to counties of Ksh. 449,000,000, netting out the Ksh.5,000,000 for operation expenses;
• ii. County Aggregation of Industrial Parks (CAiPs)-Amending the second schedule to prioritize counties with outstanding balances from the National government and sharing the balance among counties that have made significant progress in terms of implementation of the projects.

• ili. Road MaintenanceLevyFund-Deletion of the third schedule thatcontains allocation to counties from the Road Maintenance Levy Fund.
• iv. Kenya Informal Settlement Improvement Project - Amending the allocation in the fourth schedule by reducing the funds to be sent to the counties under the World Bank (IDA) from KSh. 800,000,000 to Ksh. 167,500,000 while increasing the allocation of AFD Funds from Ksh. I,0o0,0oo,000 to Ksh. 2,500,000,000.

3. Kenya Devolution Support Programme Il (KDsP Il)-Amending the fourth Y schedule to increase the allocation for level one grants to Ksh. 3,426,746,500 and reduce level two grants to Ksh. II,378,253,500.

• vi. Schedulesto theBill-that theFirst,Second,and ThirdSchedules to thisreport be theSchedules to theBill.

FIRSTSCHEDULE: SECONDSCHEDULE THIRDSCHEDULE

FIRSTSCHEDULE

| Unconditional Additional Allocationsto County Governments from Court Fines and 20%Share of Mineral Royalties in | Unconditional Additional Allocationsto County Governments from Court Fines and 20%Share of Mineral Royalties in | Unconditional Additional Allocationsto County Governments from Court Fines and 20%Share of Mineral Royalties in | Unconditional Additional Allocationsto County Governments from Court Fines and 20%Share of Mineral Royalties in | Unconditional Additional Allocationsto County Governments from Court Fines and 20%Share of Mineral Royalties in | Unconditional Additional Allocationsto County Governments from Court Fines and 20%Share of Mineral Royalties in | |-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------| | | FinancialYear2025/26(KenyaShillings) | FinancialYear2025/26(KenyaShillings) | FY2024/25 | FY2024/25 | FY2024/25 | | SN | County | Total Unconditional AdditionalAllocations to County Governments | Allocations for Court Fines | FY2025/26 Allocationsfor20% ShareofMineral Royalties | Total Unconditional Additional Allocations to County Governments | | | | ColumnA | ColumnB | ColumnC | ColumnD=B+C | | 1 | Baringo | | | 20,355 | 20,355 | | 2 | Bomet | | | | | | 3 | Bungoma | | | | | | 4 | Busia | | | | | | 5 | Elgeyo/Marakwet | | | | | | 9 | Embu | | | 2,142 | 2,142 | | 7 | Garissa | | | 844,692 | 844,692 | | 8 | HomaBay | | | | | | 9 | Isiolo | | | 348,837 | 348,837 | | 10 | Kajiado | | | 660,242,991 | 660,242,991 | | 11 | Kakamega | | | 16,555 | 16,555 | | 12 | Kericho | | | | | | 13 | Kiambu | 10,782,328 | 4,105,101 | 10,139,863 | 14,244,964 | | 14 | Kili | | | 950,062,290 | 950,062,290 | | 15 | Kirinyaga | | | 100 | 100 | | 16 | Kisii | | | 682,562 | 682,562 | | 17 | Kisumu | 299,912 | 93,000 | | 93,000 | | 18 | Kitui | 100,000 | 99,723 | 336,118 | 435,841 | | 19 | Kwale | | | 1,166,507,886 | 1,166,507,886 | | 20 | Laikipia | 1,515,334 | 27,334 | | 27,334 | | 21 | Lamu | | | | | | 22 | Machakos | 16,053,513 | 1,682,747 | 99,716 | 1,782,463 | | 23 | Makueni | | | 99,857 | 99,857 | | 24 | Mandera | | | 1,028 | 1,028 | | 25 | Marsabit | | | 1,724,590 | 1,724,590 | | 26 | Meru | | | 32,901 | 32,901 | | 27 | Migori | 974,165 | 559,346 | 3,125,408 | 3,684,754 | | 28 | Mombasa | 13,428,433 | 1,398,424 | 18,830 | 1,417,254 | | 29 | Murang'a | | | | | | 30 | Nairobi | 70,740,842 | 2,454,707 | 3,884 | 2,458,591 | | 31 | Nakuru | 1,948,197 | 1,022,898 | 82,769 | 1,105,667 | | 32 | Nandi | - | | 55,110,901 | 55,110,901 |

| UnconditionalAdditionalAllocationstoCountyGovernmentsfromCourtFinesand20%ShareofMineral Royaltiesin FinancialYear2025/26(KenyaShillings) | UnconditionalAdditionalAllocationstoCountyGovernmentsfromCourtFinesand20%ShareofMineral Royaltiesin FinancialYear2025/26(KenyaShillings) | UnconditionalAdditionalAllocationstoCountyGovernmentsfromCourtFinesand20%ShareofMineral Royaltiesin FinancialYear2025/26(KenyaShillings) | UnconditionalAdditionalAllocationstoCountyGovernmentsfromCourtFinesand20%ShareofMineral Royaltiesin FinancialYear2025/26(KenyaShillings) | UnconditionalAdditionalAllocationstoCountyGovernmentsfromCourtFinesand20%ShareofMineral Royaltiesin FinancialYear2025/26(KenyaShillings) | UnconditionalAdditionalAllocationstoCountyGovernmentsfromCourtFinesand20%ShareofMineral Royaltiesin FinancialYear2025/26(KenyaShillings) | |--------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------| | | | | FY2024/25 | FY2024/25 | FY2024/25 | | SN | County | Total Unconditional AdditionalAllocations toCountyGovernments | Allocations for Court Fines | FY2025/26 Allocationsfor20% Shareof Mineral Royalties | Total Unconditional Additional Allocations to County Governments | | | | ColumnA | Column B | ColumnC | ColumnD=B+C | | 33 | Narok | - | - | 27,206,336 | 27,206,336 | | 34 | Nyamira | | | | | | 35 | Nyandarua | - | | | | | 36 | Nyeri | 250,000 | 76,000 | | 76,000 | | 37 | Samburu | | | 905,744 | 905,744 | | 38 | Siaya | | | 259,152 | 259,152 | | 39 | TaitaTaveta | | | 51,756,326 | 51,756,326 | | 40 | Tana River | | | 10,624 | 10,624 | | 41 | Tharaka Nithi | | | 43,000 | 43,000 | | 42 | Trans Nzoia | | - | | | | 43 | Turkana | | | 141,279 | 141,279 | | 44 | Uasin Gishu | | | 5,090,269 | 5,090,269 | | 45 | Vihiga | | | | | | 46 | Wajir | | | 4,493 | 4,493 | | 47 | WestPokot | | | 1,650 | 1,650 | | | TOTAL | 116,092,724 | 11,519,280 | 2,934,923,148 | 2,946,442,428 |

SECOND SCHEDULE

| | Total Conditional Additional Allocations | 335,060,940 Column G | 97,319,315 | 149,241,682 | 92,069,249 | 54,872,640 95,088,854 | 109,488,961 | 117,026,874 94,765,505 | 345,552,741 | 224,017,600 | 341,117,479 | 349,993,246 | 426,369,365 | 58,037,438 | 290,510,643 | 167,327,249 | 369,844,316 158,163,903 | 317,672,596 | |-----------------------------------------------------|----------------------------------------------------------------------------------------------------------------|------------------------|--------------|---------------|------------------------|-------------------------|-------------------------|--------------------------|---------------|---------------------|---------------|---------------|---------------|-------------------------|---------------|---------------|---------------------------|---------------| | | Allocations for 0.5% of Housing Levy Fund to Rural and Affordable Housing Committees County Column F Urban the | 1,987,622 | 1,987,622 | 1,987,622 | 1,987,622 | 1,987,622 1,987,622 | 1,987,622 | 1,987,622 | 1,987,622 | 1,987,622 1,987,622 | 1,987,622 | 1,987,622 | 1,987,622 | 1,987,622 1,987,622 | 1,987,622 | 1,987,622 | 1,987,622 | 1,987,622 | | FY 2025/2026 Aggregation County | and Industrial Parks (CAIPs) Programme Column E | 250,000,000 | | | | | | | 250,000,000 | 50,000,000 | 250,000,000 | 133,368,421 | 250,000,000 | 127,894,743 | | 250,000,000 | 75,263,158 | 250,000,000 | | Supplement Construction County for | Headquarters Column D | | | | 1 | | | 59,000,000 | | | | | | | | | | | | Community Promoters Health (CHPs) | Programme Column C | 63,810,000 | 74,070,000 | 107,400,000 | 66,390,000 | 37,200,000 60,300,000 | 74,520,000 88,620,000 | 21,630,000 | 50,070,000 | 127,500,000 | 45,690,000 | 94,680,000 | 116,100,000 | 36,660,000 88,200,000 | 89,940,000 | 74,100,000 | 52,140,000 | 25,230,000 | | Settlement of Doctors' Arrears Salary | Column B | 19,263,318 | 21,261,693 | 39,854,059 | 23,691,627 15,685,017 | 32,801,231 | 32,981,339 26,419,251 | 12,147,883 | 43,495,118 | 44,529,977 | 43,439,856 | 119,957,202 | 58,281,743 | 19,389,816 72,428,277 | 75,399,627 | 43,756,694 | 28,773,123 | 40,454,974 | | FY 2024/25 Conditional Additional Allocations Total | ColumnA | 83,073,318 | 95,331,693 | 333,254,059 | 276,081,627 52,885,017 | 279,101,231 | 293,501,339 301,039,251 | 149,128,044 | 93,565,118 | 172,029,977 | 89,129,856 | 267,268,781 | 174,381,743 | 242,049,816 345,101,961 | 165,339,627 | 117,856,694 | 330,913,123 | 65,684,974 | | County | | Baringo | Bomet | Bungoma | Elgeyo Marakwet Busia | Embu | HomaBay Garissa | Isiolo | Kajiado | Kakamega | Kericho | Kiambu | Kilifi | Kirinyaga Kisii | Kisumu | Kitui | Kwale | Laikipia | | | | | 2 | 3 | 4 5 | 9 | 7 | 8 9 | 10 | 1 | 12 | 3 | 4 | 15 16 | 7 | 18 | 19 | 2 |

13258883

1239

| | | h | 8 | 8 3 | 9 5 | | 3 | | 3 | 8 | | 乙 | 忆 | Z 亿 | 忆 | 2 | | | |-----------------------|-----------------------|------------------------------------|-----------------------|----------------------------------------------|-------------------------------------|-------------|-----------------------|-----------------------|------------------------------------------------|------------------------|-------------------------|-------------------------|-----------------------|----------------------------------------------|------------------------|-------------------------------------------------------|---------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------| | Trans Nzoia | Tharaka Nithi | Tana River 130,917,307 | TaitaTaveta | Siaya Samburu | Nyeri Nyandarua | Nyamira | Narok Nandi | Nakuru | Nairobi Murang'a | Mombasa | Migori | Meru | Marsabit Mandera | Makueni Machakos | Lamu | ColumnA | County | | | 166,458,256 | 110,528,540 | | 73,661,911 32,591,911 | 139,165,399 59,219,798 22,723,820 13,079,798 | 129,422,326 57,653,981 | 116,981,290 | 71,296,514 | 176,056,360 | 242,425,840 336,278,649 90,404,261 112,268,649 | 155,675,190 56,993,611 | 233,213,493 108,971,914 | 302,067,815 341,395,785 | 75,118,763 38,349,159 | 144,268,273 327,896,293 | 290,553,991 | Allocations Additional Conditional | Total | FY2024/25 | | 46,626,677 67,200,000 | 24,597,481 37,950,000 | 6,982,057 28,890,000 | 41,070,000 | 63,810,000 46,140,000 | 55,172,326 16,043,981 | 19,979,711 | 21,496,514 49,800,000 | 26,764,781 96,660,000 | 99,390,000 224,010,000 | 46,050,000 | | 27,687,815 43,915,785 | 15,028,763 19,809,159 | 30,568,273 58,646,293 113,700,000 83,250,000 | 11,301,830 | Column B Column C Programme (CHPs) Promoters Health | Arrears Salary Doctors' Settlement of Community | | | | | | | | 74,250,000 41,610,000 | 44,370,000 | | | | | 71,610,000 | 88,380,000 111,480,000 | 60,090,000 18,540,000 | | 14,520,000 120,000,000 | Column D Headquarters Construction for | | | | 133,368,421 | | 30,000,000 120,000,000 250,000,000 | | 133,368,421 | 120,000,000 250,000,000 250,000,000 | 133,368,421 | 250,000,000 | 133,368,421 | 133,368,421 | 133,368,421 | 133,368,421 | | 250,000,000 | | | County ColumnE Programme Parks (CAIPs) and Industrial | Supplement Aggregation County | FY2025/2026 | | 1,987,622 | 1,987,622 | 1,987,622 | 1,987,622 | 1,987,622 1,987,622 | 1,987,622 1,987,622 | 1,987,622 | 1,987,622 | 1,987,622 | 1,987,622 1,987,622 | 1,987,622 | 1,987,622 | 1,987,622 1,987,622 2 | 1,987,622 1,987,622 | 1,987,622 1,987,622 | 1,987,622 | Column F Housing Committees | Urban the Housing Levy Allocationsfor0.5%of County Rural Affordable Fund to and | Conditional Additional Allocations to County Governments from National Government's Share of Revenue for the Financial Year 2025/26 (Kenya Shillings) | | | | | | 61,207,421 | | | | | 338,266,271 | | | 157,383,407 | 327,106,385 | 143,883,916 | | Column G | Allocations Additional TotalConditional | | | 249,182,720 | 94,535,103 | 407,859,679 | 75,649,534 | 221,889,863 | 381,409,948 429,641,603 | | 323,284,136 | 258,780,824 | | 238,399,655 | 315,937,957 | 118,055,437 | 40,336,781 | 146,255,895 | 147,809,452 | | | | | | | | | | | 199,705,755 | | 325,150,304 | | | | | | | | | | |

| | Additional Allocations | Column G | 101,224,140 73,568,093 | | 310,411,734 | 210,562,165 93,411,216 | 9,984,449,991 | |-----------------|--------------------------------------------------------------------------------------------------------------|-------------------|--------------------------|-------------|---------------|--------------------------|--------------------| | | Allocationsfor0.5%ofTotalConditional HousingLevyFundto Ruraland Affordable HousingCommittees theCounty Urban | 1,987,622 ColumnF | 1,987,622 | 1,987,622 | 1,987,622 | 1,987,622 | 93,418,251 | | FY2025/2026 | Aggregation and Industrial Parks (CAIPs) Programme County | ColumnE | | 250,000,000 | 127,894,742 | | 4,448,000,011 | | | Supplement Construction County Headquarters for | ColumnD | | | | | 449,000,000 | | Community | Programme Promoters ColumnC Health (CHPs) | 74,250,000 | 61,980,000 | 43,380,000 | 60,810,000 | 77,490,000 | 3,234,930,000 | | Settlement of | ColumnB Doctors' Arrears Salary | 24,986,518 | 9,600,471 | 15,044,112 | 19,869,801 | 13,933,594 | 1,759,101,729 | | FY2024/25 Total | Conditional Additional Allocations Column A | 99,236,518 | 257,580,471 | 58,424,112 | 265,153,485 | 91,423,594 | Total8,417,140,362 | | County NS | | Turkana 3 | Uasin Gishu 4 | Vihiga 5 | Wajir 46 | West Pokot 4 | |

| 8 | 2 | 9 | 5 | 4 | 3 | 2 | 一 | | NS | | |----------------|----------------|---------------|-----------------|--------------|--------------|--------------|--------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------| | HomaBay | Garissa | Embu | Marakwet Elgeyo | Busia | Bungoma | Bomet | Baringo | | County | | | 09,323 1,299,9 | 01,230 1,281,9 | 408,997 ,184 | 942,648 ,171 | 376,796 ,674 | 691,817 ,130 | 261,694 ,860 | 453,330 ,587 | nA Colum | 2024/25 forFY Grants and Loans Total 2024/25 | Conditional Allocations to County Governments from Loans and Grants from Development Partners for the FY 2025/26 (Kenya Shilings) FY | | 10,866, 551 | | 10,020, 926 | | 13,447, 401 | | | | nB Colum | (ABDP Project pment Develo SS Busine ulture Aquac forthe Loan (IFAD) | | | | | | | | | | | Column | Grant (CCIS) Support onal Instituti Climate County A- FLLoC ngof Financi | | | | | | | | | | | Column Grant (CCRI) ent Investm ce Resilien Climate County A. FLLoC ngof Financi | Column Grant (CCRI) ent Investm ce Resilien Climate County A. FLLoC ngof Financi | | | | | | | | | | | m Column | Grant nt(CCRI) Investme e Resilienc Climate County FLLoCA. 06 Financin | | | | | | | | | | | mn Colu | (FSR ect Proj e lienc Resi ems Syst Foo | | | | | | | | | | | nG Colum K) (DRPN Kenya rn Northe in mme Progra nce Resilie ht Droug | nG Colum K) (DRPN Kenya rn Northe in mme Progra nce Resilie ht Droug | | | 72,909, | 72,909, | 72,909, | 500 72,909, | 500 72,909, | 500 72,909, | 500 72,909, | 500 72,909, | 工 Column | 1Grant Il)Level (KDSP Two Phase m Progra Support ion Devolut Kenya | | | | | | | | | | | Column | 2Grant IlI)Level (KDSP Two Phase m Progra Support ion Devolut Kenya | | | | | | 00 65,350, | 000 60,550, | 000 60,550, | | 65,350, | nJ Colum | oP) (KeLC t Projec zation erciali Comm ock Livest Kenya | FY2025/26 | | | | | | | | | | Column | (UIG) Grant onal Instituti Urban (KUSP) Project Support Urban Kenya | | | | | | | | | | | 7 Column | (UDG) Grant pment Develo Urban (KUSP) Project t Suppor Urban Kenya | | | | | | | | | | | nM Colum | mme Progra WASH) e(K- Hygien and ion Sanitat Water, Kenya | | | 231,25 ,000 | | 0,000 231,25 | | 0,000 231,25 | 0,000 231,25 | 0,000 231,25 | | nN Colum | DP) (NAVC Project pment Develo Chain Value tural Agricul al Nation | | | 10,863, 000 | 11,322, 00 | 6,936,0 00 | 6,222,0 00 | 9,690,0 00 | 14,331, 000 | 8,874,0 00 | 8,211,0 0 | Column | mme Progra (PHDC) Context ed Devolv Care in Health Primary | | | | 00,00 150,0 0 | | | | | | | mnP Colu | (WSD ct Proje nt opme Devel ation Sanit r& Wate | | | 8,000,0 00 | | | 157,000 ,000 | | | | | Column | (KISIP Project ement Improv ent Settlem Informa Kenya | | | | | | 1,000,0 00 | | 2,500,0 0 | | | Column | (KISIP Project ement Improv ent Settlem Informa Kenya 三 | | | 333,889 ,051 | 480,385 ,346 | 321,116 ,426 | 548,635 ,346 | 387,846 ,901 | 381,540 ,500 | 313,033 ,500 | 392,624 ,346 | Column | 2025/26 forFY Grants and Loans Total | |

THIRDSCHEDULE

| (sus eyl g i au saud oa soy su pe s y suan uno o suoi o FY2025/26 | Total Loans pue Grants forFY 2025/26 | Column | 325,897 ,346 | 388,118 ,499 | 421,482 ,877 | 312,829 ,500 | 726,239 ,859 | 1,491,9 89,500 | 322,276 ,880 | 332,252 ,979 | 457,791 ,983 | |----------------------------------------------------------------------|---------------------------------------------------------------------------|-----------|----------------|-----------------|----------------|----------------|-----------------|------------------|----------------|----------------|----------------| | (sus eyl g i au saud oa soy su pe s y suan uno o suoi o FY2025/26 | Kenya Informa Settlem ent Improv ement Project (KISIP | Column R | | | | | | 10,000, | | | 20,000, 000 | | (sus eyl g i au saud oa soy su pe s y suan uno o suoi o FY2025/26 | Kenya Informa Settlem ent Improv ement Project (KISIP | Column a | | 65,000, 000 | 20,000, 000 | | 380,000 000' | 250,000 | | | 110,000 000' | | (sus eyl g i au saud oa soy su pe s y suan uno o suoi o FY2025/26 | Wate 1 ation Devel opme Proje (WSD | Colu mn P | | | | | | 0'006 00,00 0 | | | | | (sus eyl g i au saud oa soy su pe s y suan uno o suoi o FY2025/26 | Primary Health Carein Devolv ed Context (PHDC) Progra mme | Column | 6,834,0 8 | 10,353, 000 | 16,779, 000 | 8,670,0 00 | 15,198, 000 | 16,830, 000 | 6,834,0 00 | 12,546, 000 | 11,016, 000 | | (sus eyl g i au saud oa soy su pe s y suan uno o suoi o FY2025/26 | Nation Agricul tural Value Chain Develo pment Project (NAVC DP) | Colum Nu | | 231,25 0,000 | 231,25 0,000 | 231,25 000'0 | 231,25 000'0 | 231,25 0,000 | 231,25 0,000 | 231,25 000'0 | 231,25 000'0 | | (sus eyl g i au saud oa soy su pe s y suan uno o suoi o FY2025/26 | Kenya Water, Sanitat ion pue Hygien e(K- WASH) Progra mme | Colum Wu | | | | | | | | | | | (sus eyl g i au saud oa soy su pe s y suan uno o suoi o FY2025/26 | Kenya Urban Suppor , Project (KUSP) Urban Develo pment Grant (UDG) | Column | | | | | | | | | | | (sus eyl g i au saud oa soy su pe s y suan uno o suoi o FY2025/26 | Kenya Urban Support Project (KUSP)- Urban Grant (UIG) | Column | | | | | | | | | | | (sus eyl g i au saud oa soy su pe s y suan uno o suoi o FY2025/26 | Kenya Livest ock Comm erciali zation Projec (KeLC oP) | Colum ru | | | 60,550, 000 | | | | | | | | (sus eyl g i au saud oa soy su pe s y suan uno o suoi o FY2025/26 | Kenya Devolut uo Support Progra E Phase Two (KDSP Il)Level 2Grant | Column | | | | | | | | | | | (sus eyl g i au saud oa soy su pe s y suan uno o suoi o FY2025/26 | Kenya Devolut uo! Support Progra Phase M (KDSP Il)Level 1Grant | Column 工 | 72,909, 500 | 72,909, 500 | 72,909, 500 | 72,909, 500 | 72,909, 500 | 72,909, | 72,909, 500 | 72,909, 500 | 72,909, 500 | | (sus eyl g i au saud oa soy su pe s y suan uno o suoi o FY2025/26 | Droug ht Resilie nce Progra mme u! Northe Kenya (DRPN | Colum 9u | | | | | | | | | | | (sus eyl g i au saud oa soy su pe s y suan uno o suoi o FY2025/26 | Foo Syst ems Resi lienc Proj ect (FSR | Colu uu F | 13 | | | | | | | | | | (sus eyl g i au saud oa soy su pe s y suan uno o suoi o FY2025/26 | Financin 06 FLLoCA- County Climate Resilienc a Investme nt(CCRI) Grant | Column E | | | | | | | | | | | (sus eyl g i au saud oa soy su pe s y suan uno o suoi o FY2025/26 | Financi ngof FLLoC A· County Climate Resilien ce Investm ent (CCRI) Grant | Column D | | | | | | | | | | | (sus eyl g i au saud oa soy su pe s y suan uno o suoi o FY2025/26 | Financi J0bu FLLoC A- County Climate Instituti jeuo Support (CCIS) Grant | Column C | | | | | 11,000, 000 | 11,000, 000 | | | | | (sus eyl g i au saud oa soy su pe s y suan uno o suoi o FY2025/26 | (IFAD) Loan forthe Aquac ulture Busine SS Develo pment Project (ABDP | Colum nB | | 8,605,9 6 | 19,994, 377 | | 15,882, 359 | | 11,283, 380 | 15,547, 479 | 12,616, 483 | | (sus eyl g i au saud oa soy su pe s y suan uno o suoi o FY2025/26 | 2024/25 Total Loans and Grants forFY 2024/25 | Colum nA | 478,809 ,540 | 663,767 ,837 | 539,680 ,915 | 286,771 ,820 | 2,064,8 84,057 | 2,868,4 24,744 | 286,965 ,538 | 359,406 ,164 | 1,451,2 65,551 | | | County | | Isiolo | Kajiado | Kakamega | Kericho | Kiambu | Kilifi | Kirinyaga | Kisi | Kisumu | | SN | SN | | 9 | 0 | | 1 2 | 1 3 | 4 | 5 | 9 | 7 |

| 25 | 24 | 23 | 22 | 21 | 20 | 6 | 18 | | SN | |--------------|--------------|--------------|---------------|--------------|--------------|----------------|--------------|----------------------------------------------------------------|-----------------------------------------------------------------------| | Marsabit | Mandera | Makueni | Machakos | Lamu | Laikipia | Kwale | Kitui | | County | | 942,486 ,800 | 556,755 ,533 | 286,509 ,113 | 453,914 ,825 | 591,169 ,100 | 340,145 | 34,744 1,454,9 | 411,362 ,090 | nA Colum | 2024/25 forFY Grants and Loans Total 2024/25 | | | | | 11,679, 038 | | | | | nB Colum Project pment SS ulture Loan (IFAD) | (ABDP Develo Busine Aquac forthe | | | 00 11,000, | | | | | | | C Column Grant (CCIS) Support onal Instituti Climate County A- | FLLoC ngof Financi | | | | | | | | | | Column Grant (CCRI) ent ce County A- FLLoC ngof | Investm Resilien Climate Financi | | | | | | | | | | E Column | Grant nt(CCRI) Investme e Resilienc Climate County FLLoCA 06 Financin | | | | | | | | | | Colu | (FSR ect Proj e lienc Resi ems Syst d Foo | | 2,208 580,00 | | | | | | | | nG Colum | K) (DRPN Kenya rn Northe in mme Progra nce Resilie ht Droug | | 72,909, | 500 72,909, | 500 72,909, | 500 72,909, | 72,909, | 500 72,909, | 500 72,909, | 500 72,909, | 工 Column | 1Grant Il) Level (KDSP Two Phase m Progra Support ion Devolut Kenya | | | | | | | | | | Column | 2Grant Il) Level (KDSP Two Phase m Progra Support ion Devolut Kenya | | 70,250, | | | | | | | | nJ Colum | oP) (KeLC t Projec zation erciali Comm ock Livest Kenya FY2025/26 | | | | | | | | | | Column | (UIG) Grant onal Instituti Urban (KUSP)- Project Support Urban Kenya | | | | | | | | | | Column 厂 | (UDG) Grant pment Develo -Urban (KUSP) Project t Suppor Urban Kenya | | | | | | | | | | nM Colum | mme Progra WASH) e(K- Hygien and ion Sanitat Water, Kenya | | | | 0,000 231,25 | 0,000 231,25 | | | 0,000 231,25 | 0,000 231,25 | nN Colum | DP) (NAVC Project pment Develo Chain Value tural Agricul al Nation | | 10,914, 000 | 16,473, 000 | 11,934, 000 | 12,495, 000 | 4,182,0 00 | 6,732,0 00 | 12,546, | 14,229, 000 | Column | mme Progra (PHDC) Context ed Devolv Carein Health Primary | | | | | | | | | | mnP Colu | (WSD ct Proje nt opme Devel ation Sanit r& Wate | | | | | | 15,000, | | | | Column | (KISIP Project ement Improv ent Settlem Informa Kenya 三 | | | | | | | | | | Column R | (KISIP Project ement Improv ent Settlem Informa Kenya 三 | | 980,229 ,554 | 346,536 ,346 | 316,093 ,500 | 328,333 ,538 | 338,245 ,346 | 325,795 ,346 | 786,705 ,500 | 318,388 ,500 | Column | 2025/26 forFY Grants and Loans Total |

| (s e g sn a y s pe s y s n s FY2025/26 | Total Loans pue Grants forFY 2025/26 | Column | 345,151 ,652 | 327,862 ,388 | 1,012,2 82,500 | 314,308 ,500 | 861,562 ,500 | 647,590 ,500 | 313,778 ,500 | 317,113 ,500 | 328,911 ,500 | 372,013 ,500 | |----------------------------------------------|---------------------------------------------------------------------------|-----------|----------------|----------------|------------------|----------------|----------------|----------------|----------------|----------------|----------------|----------------| | (s e g sn a y s pe s y s n s FY2025/26 | Kenya Informa Settlem ent Improv ement Project (KISIP = | Column R | 11,000, 000 | | 5,000,0 00 | | 30,000, 000 | 36,000, 000 | 1,000,0 00 | | 17,000, 000 | 30,000, 000 | | (s e g sn a y s pe s y s n s FY2025/26 | Kenya Informa Settlem ent Improv ement Project (KISIP = | Column | | | 240,000 000' | | 550,000 000' | 230,000 000' | | | | 30,000, 000 | | (s e g sn a y s pe s y s n s FY2025/26 | Wate Sanit ation Devel opme Proje ct (WSD | Colu mnP | | | 500,0 00'00 | | | | | | | | | (s e g sn a y s pe s y s n s FY2025/26 | Primary Health Carein Devolv ed Context (PHDC) Progra mme | Column | 12,954, 000 | 10,914, 000 | 11,373, 000 | 10,149, 000 | 25,653, 000 | 16,881, 000 | 8,619,0 00 | 12,954, 000 | 7,752,0 00 | 7,854,0 00 | | (s e g sn a y s pe s y s n s FY2025/26 | Nation Agricul tural Value Chain Develo pment Project (NAVC DP) | Colum Nu | 231,25 000'0 | 231,25 000'0 | 150,00 0,000 | 231,25 000'0 | 150,00 0,000 | 231,25 000'0 | 231,25 000'0 | 231,25 000'0 | 231,25 0,000 | 231,25 000'0 | | (s e g sn a y s pe s y s n s FY2025/26 | Kenya Water, Sanitat uo! pue Hygien e(K- WASH) Progra mme | Colum nM | | | | | | | | | | | | (s e g sn a y s pe s y s n s FY2025/26 | Kenya Urban Suppor Project (KUSP) -Urban Develo pment Grant (UDG) | Column | | | | | | | | | | | | (s e g sn a y s pe s y s n s FY2025/26 | Kenya Urban Support Project (KUSP)- Urban Instituti onal Grant (UIG) | Column | | | | | | | | | | | | (s e g sn a y s pe s y s n s FY2025/26 | Kenya Livest ock Comm erciali zation Projec t (KeLC oP) | Colum ru | | | | | | 60,550, 000 | | | | | | (s e g sn a y s pe s y s n s FY2025/26 | Kenya Devolut ion Support Progra Phase M (KDSP I) Level 2Grant | Column | | | | | | | | | | | | (s e g sn a y s pe s y s n s FY2025/26 | Kenya Devolut ion Support Progra E Phase 0M (KDSP Il) Level 1Grant | Column 工 | 72,909, 500 | 72,909, 500 | 72,909, 500 | 72,909, 500 | 72,909, 500 | 72,909, 500 | 72,909, 500 | 72,909, 500 | 72,909, 500 | 72,909, 500 | | (s e g sn a y s pe s y s n s FY2025/26 | bnoa ht Resilie nce Progra mme u! Northe u Kenya (DRPN K) | Colum 9u | | | | | | | | | | | | (s e g sn a y s pe s y s n s FY2025/26 | Foo Syst ems Resi lienc e Proj ect (FSR P | o F | | | | | | | | | | | | (s e g sn a y s pe s y s n s FY2025/26 | Financin 06 FLLoCA- County Climate Resilienc e Investme nt(CCRI) Grant | Column E | | | | | | | | | | | | (s e g sn a y s pe s y s n s FY2025/26 | Financi jobu FLLoC A- County Climate Resilien ce Investm ent (CCRI) Grant | Column | | | | | | | | | | | | (s e g sn a y s pe s y s n s FY2025/26 | Financi jobu FLLoC A- County Climate Instituti onal Support (CCIS) Grant | Column C | | | 33,000, 000 | | 33,000, 000 | | | | | | | (s e g sn a y s pe s y s n s FY2025/26 | (IFAD) Loan forthe Aquac ulture Busine SS Develo pment Project (ABDP | Colum nB | 17,038, 152 | 12,788, 888 | | | | | | | | | | (s e g sn a y s pe s y s n s FY2025/26 | 2024/25 Total Loans and Grants forFY 2024/25 | Colum nA | 674,777 ,970 | 371,829 ,022 | 1,919,2 90,169 | 315,378 ,979 | 831,890 ,169 | 1,511,0 33,830 | 485,520 ,259 | 325,955 ,472 | 410,284 ,521 | 567,460 ,682 | | | County | | Meru | | Mombasa | Murang'a | Nairobi City | Nakuru | Nandi | Narok | Nyamira | Nyandarua | | s: | s: | s: | 2 6 | 2 | 2 8 | 2 9 | 3 0 | 3 | 3 2 | 3 3 | 3 4 | 3 5 |

| 44 | 43 | 42 | 41 | 40 | 39 | 38 | 37 | 36 | NS | |----------------|----------------|----------------|---------------|--------------|----------------|--------------|-------------------|-----------------------|------------------------------------------------------------------------------------------------------------------------------------------| | UasinGishu | Turkana | TransNzoia | Nithi Tharaka | TanaRiver | TaitaTaveta | Siaya | Samburu | Nyeri | County Conditional Allocations to County Governments fromLoans and Grants from Development Partners for the FY 2025/26 (Kenya Shillings) | | 40,019 1,619,7 | 42,698 1,097,5 | 58,172 1,035,9 | 593,697 ,047 | 435,308 ,033 | 70,871 1,300,3 | 336,462 ,266 | 472,738 ,784 | 688,008 nA Colum ,026 | 2024/25 forFY Grants and Loans Total 2024/25 FY | | | | | 10,489, 999 | | | 12,969, 602 | | 16,769, nB 367 | Colum (ABDP Project pment Develo SS Busine ulture Aquac forthe Loan (IFAD) | | | | | | | | 000 11,000, | | C Column | Grant (CCIS) Support onal Instituti Climate County A- FLLoC ngof Financi | | | | | | | | | | Column | Grant (CCRI) ent Investm ce Resilien Climate County A. FLLoC ngof Financi | | | | | | | | | | m Column | Grant nt(CCRI) Investme e Resilienc Climate County FLLOCA 06 Financin | | | | | | | | | | ” | Colu (FSR ect Proj e lienc Resi ems Syst d Foo | | | 2,000 696,65 | | | | | | | nG | Colum (DRPN Kenya rn Northe in mme Progra nce Resilie ht Droug | | 72,909, 500 | 72,909, 30 | 72,909, 500 | 72,909, 500 | 72,909, | 72,909, 30 | 72,909, 500 | 72,909, 500 | 72,909, 500 工 | Column 1Grant Il)Level (KDSP Two Phase Progra Support ion Devolut Kenya | | | | | | | | | | Column | 2Grant IlLevel (KDSP Two Phase m Progra Support ion Devolut Kenya | | | | 000 60,550, | | | | 000 60,550, | 000 70,250, | nJ Colum | oP) (KeLC t Projec zation erciali Comm ock Livest Kenya FY2025/26 | | | | | | | | | | Column | (UIG) Grant onal Instituti Urban (KUSP)- Project Support Urban Kenya | | | | | | | | | | Column | (UDG) Grant pment Develo -Urban (KUSP) Project t Suppor Urban Kenya | | | | | | | | | | nM Colum | mme Progra WASH) e(K- Hygien and ion Sanitat Water, Kenya | | 0,000 231,25 | | 0,000 231,25 | 0,000 231,25 | | 0,000 231,25 | 0,000 231,25 | | 0,000 231,25 nN Colum | DP) (NAVC Project pment Develo Chain Value tural Agricul al Nation | | 10,200, 000 | 16,983, 00 | 9,282,0 00 | 6,324,0 00 | 9,435,0 00 | 6,834,0 00 | 9,333,0 00 | 7,446,0 00 00 | 8,721,0 Column | mme Progra (PHDC) Context ed Devolv Carein Health Primary | | | | | | | 00,00 450,0 0 | | | mnP Colu | (WSD ct Proje nt opme Devel ation Sanit r& Wate | | 260,000 ,000 | | | | | | | | 52,000, Column | (KISIP Project ement Improv ent Settlem Informa Kenya 三 | | | | 00 3,000,0 | 00 1,000,0 | | | | | Column | (KISIP Project ement Improv ent Settlem 一 Informa Kenya | | 574,359 ,500 | 98,346 1,032,6 | 376,991 ,500 | 321,973 ,499 | 328,498 ,346 | 820,993 ,500 | 398,012 ,102 | 396,759 ,346 ,867 | 381,649 Column | 2025/26 forFY Grants and Loans Total |

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| FY2025/26 Support Project (KUSP)- Urban onal Grant (UIG) Kenya Livest ock Comm erciali zation Projec (KeLC oP) Kenya Devolut ion Support Progra Phase (KDSP Il)Level Kenya Devolut uol Support Progra E Phase Two (KDSP Il)Level Droug ht Resilie nce Progra mme Northe u Kenya Foo d Syst ems Resi lienc Proj ect (FSR Financin gof FLLoCA- County Climate Resilienc e Investme nt (CCRI) Grant | Total Loans and Grants forFY 2025/26 | Column | 311,656 ,500 | 946,833 ,346 | 327,121 ,346 | 57,735, 435,467 | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------|-----------------------------------------------------------|-----------------------|----------------|----------------|-------------------| | | | Kenya Informa Settlem ent Improv ement Project (KISIP = | Column | | | | | 167,500 000 | | Kenya Informa Settlem ent Improv ement Project (KISIP = | Column Q | 00 | 53,000, | | | 2,500,0 00,000 | Wate | Sanit ation Devel opme nt Proje ct (WSD | Colu | 550,0 00'00 | 0 | | | 3,000 | Health pa (PHDC) | Primary Care in Devolv Context Progra mme | Column 7,497,0 00 o | 13,770, 000 | | 8,058.0 00 | | 510,000 | Nation al Agricul tural Value Chain Develo pment Project (NAVC DP) | | Colum Nu 231,25 000'0 | | | | | 7,700,0 00,000 | (ss eyl g i u saued oa soy s pe s y suaan uno o suooi o | Kenya Water, Sanitat ion pue Hygien e(K- WASH) Progra mme | Colum Wu | | | | | 4,607,5 26,599 | Kenya Urban Suppor , Project (KUSP) -Urban Develo pment Grant | (UDG) Column | | | | | | 10,325, 754,660 | Kenya Urban | Column | | | | | | 1,300,0 00,000 | | | Colum ru | | | | | 634,50 0,000 | | 2Grant | Column | | | | | 11,378, 253,500 | | Grant | Column 72,909, 000 工 | 72,909, 500 | | 72,909, 000 | | 3,426,7 46,500 | | (DRPN Colum | nG | | | | | 1,276, 654,20 8 | | Colu | | | 26.13 68 | 13 | | | | Column E | | | | | | 1,200,000 000' | Financi 0bu FLLoC A- County Climate Resilien ce Investm ent (CCRI) Grant | Column D | | | | | | 6,187,5 00,000 | Financi 06u FLLoC A. County Climate Instituti onal Support (CCIS) Grant | Column C | | 11,000, | | | | 121,000 000' | (IFAD) Loan forthe Aquac ulture Busine SS Develo pment Project (ABDP | Colum nB | | | | | | 200,00 0,000 | FY 2024/25 Total Loans and Grants forFY 2024/25 | Colum nA | 260,378 ,610 | 1,673,7 16,058 | | 408,266 ,834 | | 37,089, 957,743 | County | | Vihiga | | Wajir | WestPokot | | TOTAL | SN | | 45 | 6 | 4 | 4 7 |

REPUBLICOFKENYA

NATIONALASSEMBLY THIRTEENTHPARLIAMENT-FOURTHSESSSION

BUDGETANDAPPROPRIATIONSCOMMITTEE ADOPTIONSCHEDULE

We, the,undersigned Members of the Budget and Appropriations Committee, today..S.o.!.la.?.... ....do hereby affix our signatures to this REPORT OF BUDGETANDAPPROPRIATIONS COMMITTEEONTHE COUNTY GOVERNMENTS' ADDITIONAL ALLOCATION BILL,2025 (SENATE BILLS NO. 8 OF 2025) to affirm our approval and confirm accuracy, validity and authenticity: -

| No | NAME | SIGNATURE | |------|-------------------------------------------------------|--------------| | I. | Hon. Atandi, Samuel Onunga, M.P. -Chairperson | | | 2. | Hon. (Dr.) Pukose Robert, CBS, M.P.- Vice Chairperson | | | 3. | Hon. Chumel, Samwel Moroto, M.P. | | | 4. | Hon. (Dr.) Adan Wehliye Keynan, CBS, M.P. | | | 5. | Hon. Mulu, Makali, PhD.CBS, M.P. | | | 6. | Hon. Lekuton, Joseph, M.P. | | | 7. | Hon. Lesuuda, Josephine Naisula, OGW, M.P. | | | 8. | Hon. Robi, Mathias Nyamabe, M.P. | | | 9. | Hon. Ochieng, David Ouma, M.P. | | | 10. | Hon. Muchira, Michael Mwangi, M.P. | | | 11. | Hon. Mwakuwona, Danson Mwashako, M.P. | | | 12. | Hon. Mwirigi, John Paul, M.P. | | | 13. | Hon. Wangaya, Christopher Aseka, M.P. | | | 14. | Hon. (Dr.) Masara, Peter Francis, M.P. | | | 15. | Hon. (Dr.) Ongili, Babu Owino Paul, M.P. | | | 16. | Hon. Wanjiku, John Njuguna, M.P. | kaeectfiewls | | 17. | Hon. Sergon, Flowrence Jematiah, M.P. | | | 18. | Hon. Guyo, Ali Wario, M.P. | |

3

| 19. | Hon. (Dr.) Gogo, Lilian Achieng, M.P. | |-------|-----------------------------------------| | 20. | Hon. Murumba, John Chikati, PhD., M.P. | | 21. | Hon. Busia, Ruth Adhiambo Odinga, M.P. | | 22. | Hon. Kitilai, Ole Ntutu, M.P. | | 23. | Hon. Mokaya, Nyakundi Japheth, M.P. | | 24. | Hon. Abdirahman Mohamed Abdi, M.P. | | 25. | Hon. Mutuse, Eckomas Mwengi, OGW, M.P. | | 26. | Hon. Kagiri, Jane Wangechi, OGW, M.P. | | 27. | Hon. (Dr.) Mugo, Edwin Gichuki, M.P. |

MINUTESOFTHE33RDSITTINGOFTHESELECTCOMMITTEEONBUDGET &APPROPRIATIONSHELDONFRIDAY,5THSEPTEMBER2025FROM3.00P.M. ATMAINCONFERENCEROOMENGLISHPOINTMARINAHOTEL,MOMBASA COUNTY.

PRESENT:

• I. Hon. Atandi, Samuel Onunga, M.P. -Chairperson

2. 2.Hon.(Dr.) Pukose Robert, CBS, M.P.-Vice Chairperson 3. Hon. Chumel, Samwel Moroto, CBS, M.P. 4. Hon.(Dr.) Adan Wehliye Keynan, CBS, M.P. 5. Hon. Lekuton, Joseph, M.P. 6. Hon. Muchira, Michael Mwangi, M.P. 7. 7.Hon. Mwakuwona, Danson Mwashako, M.P. 9. Hon. (Dr.) Gogo, Lilian Achieng, M.P 9. 8.Hon. Mwirigi, John Paul, M.P. 10. 10.Hon.(Dr.) Masara,Peter Francis,M.P. 11. I I1. Hon. Wanjiku, John Njuguna, M.P. 13. Hon. Kitilai, Ole Ntutu, M.P. 12. Hon. Sergon, Flowrence Jematiah, M.P. 14. I4. Hon. Guyo, Ali Wario, M.P. 15. Hon. Murumba, John Chikati, PhD, M.P. 16. Hon. Abdirahman Mohamed Abdi, M.P. 17. Hon. Mutuse, Eckomas Mwengi, OGW, M.P.

APOLOGIES:

• I.Hon. Mulu, Makali, PhD, CBS, M.P.

2. Hon.Lesuuda,Josephine Naisula,OGW,M.P. 3. Hon.Robi, Mathias Nyamabe,M.P. 4. Hon. Ochieng, David Ouma, M.P. 5. Hon. Busia, Ruth Adhiambo Odinga, M.P. 6. Hon. Wangaya, Christopher Aseka, M.P.

• 8.Hon. Mokaya, Nyakundi Japheth, M.P.

7. Hon. (Dr.) Ongili, Babu Owino Paul, M.P 9. Hon. Kagiri, Jane Wangechi, OGW, M.P. 10. Hon. (Dr.) Edwin Mugo, M.P.

PARLIAMENTARYBUDGETOFFICE

• 1.FA.(Dr.) Martin Masinde, OGW

Director,PBO

2. Dr. Abel Nyagwachi

Senior Fiscal Analyst

3. Ms. Julie Mwithiga

Senior Fiscal Analyst

• 4.Mr. Benard Adera

Fiscal Analyst II

• 5.Mr.Michael Kiminza

Fiscal Analyst Il

COMMITTEESECRETARIAT

• 1.Mr. Danson Kachumbo

SeniorFiscal Analyst

2. Ms. Sylvia Ocharo

Senior Research and Policy Analyst

• 3.Mr.Mosses Mwariri

Legal Counsel

• 4.Ms. Loice Olesia

Fiscal Analyst Il

• 5.Ms.Fridah Ngari

Media Relations Officer Ill

6. Mr. Simon Ouko

Sergeant at Arms

7. Mr. Jared Amara

Office Assistant

AGENDA

1. Preliminaries. 2. Adoption of Committee Reports on:-

• i. TheCountyGovernments'Additional Allocations(No.2) Bill(SenateBill No.8of2025);and
• ii. TheEqualizationFundBill(SenateBill No.7of2025)

5. 3.Any Other Business (A.O.B).

MIN.NO.NA/BAC/2025/131: PRELIMINARIES

TheChairpersonwelcomed thecommitteemembers to themeetingandcalled themeetingto order at 3.00 p.m. A prayer was said by Hon. Sergon, Flowrence Jematiah, M.P.

MIN.NO.NA/BAC/2025/132:

ADOPTION OFCOMMITTEE REPORTSON THE COUNTY GOVERNMENTS' ADDITIONAL ALLOCATIONS(NO.2)BILL(SENATEBILLNO. 8 OF 2025)

The Parliamentary Budget office took members through the draft report. The report was proposed by Hon. (Dr.) Pukose Robert, CBS, M.P. and seconded by Hon. Kitilai, Ole Ntutu, M.P. After deliberation the report was ADOPTED with the following observations and recommendationsasfollows:

CommitteeObservations

1. The Bill allocates Ksh. 2.93 billion to ten specific counties, equivalent to the 20% share of mineralroyaltiesaccumulatedsince2016.Previously,thesefundscouldnotbedisbursed duetothelackof transferframeworksandwereheld intheConsolidatedFund.To

facilitate thewithdrawalfrom theConsolidatedFund,anddisbursementofthesefundsto the beneficiary counties, the allocation has been included in the budget.

2. While the Bill allocates Ksh 454 million for County Headquarters construction, the FY 2025/26budgetdesignatesKsh.449millionasadirectconditionaltransferforthe construction works and Ksh. 5 million for operational expenses of the state department. 2. 3.The allocation of Ksh. 4.5 billion to eighteen counties under the CAlPs Programme counties have achieved significant milestones in project execution, they have not been prioritisedforfundinginFY2025/26.Conversely,somecountiesstill attheinitial stages of implementation are being considered for funding. 3. 4.The Bill provides for an allocation of Ksh. 23.64 billion from the Road Maintenance Levy Fund (RMLF) to support county road maintenance. On 25th July 2025, the Court of previouslyinvalidatedthelegislationregardingtheestablishmentanddistributionofthe RMLF. The Court of Appeal granted Parliament a I2-month period to align road funding obseas 4. 5.The Bill providesfor allocations from theproceeds of loans andgrantsfrom development partners totallingKsh.56.91 billion.Nonetheless, donor-fundedprojects have historically faced implementation delays attributed to late or insufficient disbursements. These setbacks arise from missed implementation deadlines, unmet conditions, and the impact of currency fluctuations.

Recommendation

Having deliberated on the provisions of the Bill, the Committee recommends that the House approvetheCountyGovernmentsAdditionalAllocationsBill,2025(SenateBillNo.8of2025) andtheSchedulescontainedintheBill,withthefollowingamendments:

1. Construction of county Headquarters - Amending the second schedule to reflect the actual transfers to counties of Ksh. 449,000,000, netting out the Ksh. 5,000,000 for operation expenses; 2. County Aggregation of Industrial Parks (CAiPs)-Amending the second schedule to prioritize counties with outstanding balances from the National government and sharing

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• the balance among counties that have made significant progress in terms of implementationof theprojects.
• 3.Road Maintenance Levy Fund- Deletion of the third schedule that contains allocation tocountiesfromtheRoadMaintenanceLevyFund.
• 4.Kenya InformalSettlement Improvement Project-Amending the allocation in the fourth schedule by reducing the funds to be sent to the counties under the World Bank (IDA) from KSh. 800,000,000 to Ksh. 167,500,000 while increasing the allocation of AFD Funds from Ksh. 1,000,000,000 to Ksh. 2,500,000,000.
• 5.Kenya Devolution Support Programme Il (KDSP Il)-Amending the fourth schedule toincrease the allocationforlevel onegrantstoKsh.3,426,746,500and reduce level twogrants toKsh.11,378,253,500.
• 6.Schedules to the Bill-thattheFirst,Second,and ThirdSchedulesto thisreport be theSchedulestotheBill.

EQUALIZATIONFUNDBILL(SENATEBILLNO.7 OF 2025)

The Parliamentary Budget office took members through the draft report. The report was proposed by Hon.(Dr.) Masara,Peter Francis,M.P.and seconded by Hon.Guyo,Ali Wario, M.P After deliberation the report was ADoPTED with the following observations and recommendationsasfollows:

CommitteeObservations

• 1.The Committee observed thatwhile the SenateBill mirrors the National Assembly Bill in the enactmentof theDivision of RevenueAct,2025,byParliamenthassincerevised the actualallocationforFY2025/26toKsh.9.59billion.
• 2.The Committee observed inconsistenciesin the commencement dates under ClausesI and 3, creating ambiguity as to whether the Act was intended to operate retrospectively. It further noted that the Bill lacked clear definitions of key terms, including "Board" and "Equalisation Fund," and erroneously assigned the role of fund management to the

Management (Equalisation Fund Administration) Regulations, 2021. The Committee cautioned that such gaps and inconsistencies could undermine the proper interpretation and effectiveimplementationoftheAct.

• 3.The Committee observed that although Clause 4 excluded the Equalisation Fund from being paid into the County Revenue Fund, it failed to establish a clear framework for managingthefundsatthecountylevel.Inparticular,theabsenceofalegalrequirement for counties to open dedicated special-purpose accounts at the Central Bank of Kenya poses risks of diversion or absorption of allocations into general county accounts. This gap undermines the objective of financing basic services in marginalised areas and runs contrary to the principles of accountability andprudent use of publicresources under Article20l of the Constitution.

Committee Recommendations

The Committee, having reviewed, scrutinized, and examined the Equalization Fund Appropriation Bill, 2025, recommends that the House approve the Bill with the following amendments:-

• i. THAT, Clause I of the Bill be amended by deleting the words "the date of publication in the Gazette" and substituting therefor the words "lst July, 2025", since the commencementdateinClauseIconflictswithClause3,whichdeemstheamount appropriated as of Ist July,2025,the amendment harmonises the commencement provisions and aligns them with the standard practice for Appropriation Acts, which ordinarily take effect on Ist July of the relevant financial year.
• ii. THAT, the Bill be amended by inserting the following new clause immediately after Clause I Interpretation IA. In this Act, unless the context otherwise requires "Board" Finance Management (Equalisation Fund Administration) Regulations; and "Equalisation Fund" means the Equalisation Fund established under Article 204(l) of the Constitution toprovide clear definitions of key terms, ensure consistency with existing legal and regulatory frameworks, and enhance the effective interpretation and implementation of theAct.

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• il. THAT,Clause 3 of the Bill be amended by deleting the words"is deemed tohave been appropriated onIst July 2025 for"and substituting therefor the words"shallbe applied towards".The Clause provides for the appropriation of the money granted.Theproposed deletion is a consequential amendment arising from the change to Clause I.
• iv. THAT, Clause 4 of the Bill be amended by inserting the following new subsection shall open a special purpose account at the Central Bank of Kenya into which shall be paid thatcounty'sallocationof theEqualisationFund for therespectiveyear."This amendment ensures compliance with Article 20l of the Constitution on transparency and accountabilityinpublicfinancialmatters.ExcludingtheFundfrombeingpaidintothe CountyRevenueFundwithoutspecifyingan alternative accountwoulddefeat theFund's purpose.

MIN.NO.NA/BAC/2025/134: ANYOTHERBUSINESS&ADJOURNMENT

Therebeing nootherbusiness,the meetingwas adjourned at 4.00p.m.The next meetingwill becommunicatedonnotice.

SIGNED

HON.ATANDISAMUELONUNGA,M.P. CHAIRPERSON,BUDGETANDAPPROPRIATIONSCOMMITTEE

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