Carb Report 2026

16

REPUBLICOFKENYA

THIRTEENTHPARLIAMENT-FIFTHSESSION

THESENATE

STANDINGCOMMITTEEONFINANCEANDBUDGET

REPORTONTHECOUNTYALLOCATIONOFREVENUEBILL, 2026(SENATEBILLSNO.10OF2026)

PAPERS LAID

<626

DATE

1C16/2026

TABLED BY

中

Bndget

COMMITTEE

CLERKATTHETABLE

herp

APRROVED

RT. HON. SEN

AMASONJ.KINGI

Clerk's Chambers, Parliament Buildings, NAIROBI.

June 2026

TABLEOFCONTENTS

CHAPTER THREE

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5

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| LISTOFABBREVIATIONS/ACRONYMS | LISTOFABBREVIATIONS/ACRONYMS | LISTOFABBREVIATIONS/ACRONYMS | | |-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------| | PREFACE | PREFACE | PREFACE | | | ESTABLISHMENTANDMANDATEOFTHECOMMITTEE | ESTABLISHMENTANDMANDATEOFTHECOMMITTEE | ESTABLISHMENTANDMANDATEOFTHECOMMITTEE | | | MEMBERSHIPOFTHECOMMITTEE | MEMBERSHIPOFTHECOMMITTEE | MEMBERSHIPOFTHECOMMITTEE | | | CHAIRPERSON'SFOREWORD | CHAIRPERSON'SFOREWORD | CHAIRPERSON'SFOREWORD | | | Acknowledgement | Acknowledgement | 9 | | | CHAPTER ONE | CHAPTER ONE | 11 | | | OVERVIEW OF THE COUNTY ALLOCATION OF REVENUEBILL,2026 (SENATE BILLS NO. 10 OF 2026) | OVERVIEW OF THE COUNTY ALLOCATION OF REVENUEBILL,2026 (SENATE BILLS NO. 10 OF 2026) | 11 | | | 1.0 Introduction | 1.0 Introduction | 11 | | | 1.1 Analysis of the County Allocation of Revenue Bill (CARB), 2026. | 1.1 Analysis of the County Allocation of Revenue Bill (CARB), 2026. | 11 | | | 1.2 County Govcrnment Budget Ceilings on Recurrent Expenditure for FY 2026/27. | 1.2 County Govcrnment Budget Ceilings on Recurrent Expenditure for FY 2026/27. | 1.2 County Govcrnment Budget Ceilings on Recurrent Expenditure for FY 2026/27. | 1.2 County Govcrnment Budget Ceilings on Recurrent Expenditure for FY 2026/27. | | | | 15 | | | SUBMISSIONSBYSTAKEHOLDERS | SUBMISSIONSBYSTAKEHOLDERS | 19 | | | 2.0Introduction | 2.0Introduction | 19 | | | 2.1 Submissions by National Treasury and EconomicPlanning | 2.1 Submissions by National Treasury and EconomicPlanning | 19 | | | 2.2 | Submissions by Commission on Revenue Allocation (CRA) | 20 | | | 2.3 | Submissions by the Council of Governors | 23 | | | 2.4 | Submissions by the County Assembly Forum (CAF) | 24 | | | 2.5 | Submissions by the Mau Mau Children Post-Colonial Elites | 26 | | | 2.6 Submission by County Assemblies | 2.6 Submission by County Assemblies | 27 | | | 2.6.1 CountyAssemblyofNairobi City | 2.6.1 CountyAssemblyofNairobi City | 27 | | | 2.6.2 County Assembly of Kiambu | 2.6.2 County Assembly of Kiambu | 29 | | | 2.6.3 County Assembly of Uasin Gishu | 2.6.3 County Assembly of Uasin Gishu | 31 | | | 2.6.4 County Assembly of Kakamega | 2.6.4 County Assembly of Kakamega | 32 | | | 2.6.5 County Assembly of Kitui | 2.6.5 County Assembly of Kitui | 35 | | | 2.6.6 County Assembly of Kisumu | 2.6.6 County Assembly of Kisumu | 36 | | | 2.6.7 County Assembly of Laikipia | 2.6.7 County Assembly of Laikipia | 38 | | | 2.6.8 County Assembly of Garissa | 2.6.8 County Assembly of Garissa | 39 | | | 2.6.9 County Assembly of Migori | 2.6.9 County Assembly of Migori | 40 | | | 2.6.10 County Assembly of Taita Taveta | 2.6.10 County Assembly of Taita Taveta | 42 | | | 2.6.11 County Assembly of Marsabit | 2.6.11 County Assembly of Marsabit | 43 | |

| FORRECURRENTEXPENDITUREBUDGETCEILINGADJUSTMENTFORFY | | |-------------------------------------------------------|----| | 2026/27 | 45 | | CHAPTERFOUR | 48 | | COMMITTEEOBSERVATIONSANDRECOMMENDATIONS | 48 | | Observations | 48 | | Recommendations | 48 |

LISTOFABBREVIATIONS/ACRONYMS

CARB

County Allocation of Revenue Bill

CoG

Council of County Governors

CRA

Commission on Revenue Allocation

FY

Financial Year

IEBC

Independent Electoral and Boundaries Commission

O&M

Operations and Maintenance

PFM

Public Finance Management

SRC

Salaries and Remuneration Commission

PREFACE

ESTABLISHMENTANDMANDATEOFTHECOMMITTEE

Article 124(1) of the Constitution of Kenya provides that each House of Parliament may cstablish committees and shall make Standing Orders for the orderly conduct of its procecdings, including the proceedings of its committees.

Parliamentary committees consider policy issues, scrutinize the workings and expenditures of the National and County Governments, and examine proposals for legislation. The end result of any process in Committees is a report, which is tabled in the House for consideration.

The Senate Standing Committee on Finance and Budget is established under Section 8(1) of the Public Finance Management (PFM) Act, Cap. 412A and standing order 228 of the Senate Standing Orders and is mandated to-

• a) investigate, inquire into, and report on all matters relating to coordination, control, and monitoring of the county budgets and examine -
• i. the Budget Policy Statement presented to the Senate;
• ii. the report on the budget allocated to constitutional Commissions and independent offices;
• i. the Division of Revenue Bill, the County Allocation of Revenue Bill, the County Governments Additional Allocations Bill, and the cash disbursement schedules for county governments;

5. iv.all matters related to resolutions and Bills for appropriations, the share of national revenue amongst the counties, matters concerning the national budget, including public finance and monetary policies and public debt, planning, and development policy; and

• b) Pursuant to Article 228 (6) of the Constitution, to examine the report of the Controller of Budget on the implementation of the budgets of county governments.

MEMBERSHIPOFTHECOMMITTEE

The Standing Committee on Finance and Budget was constituted by the Senate of the Thirteenth (13th) Parliament on Thursday, 13th October, 2022 during the First Session. The Committce was later reconstituted on Wednesday, 12th February, 2025, during the Fourth Session. The Committee as currently constituted is comprised of the following Members-

| 1) Sen.(Capt.) Ali Ibrahim Roba,EGH, MP | Chairperson | |-------------------------------------------|------------------| | 2) Sen.Maureen Tabitha Mutinda, CBS,MP | Vice-Chairperson | | 3) Sen. (Dr.) Boni Khalwale, CBS, MP | Member | | 4)Sen.Mohamed Faki Mwinyihaji, CBS, MP | Member | | 5) Sen. Richard Momoima Onyonka, MP | Member | | 6) Sen. Shakila Abdalla Mohamed, MP | Member | | 7) Sen.Eddy Gicheru Oketch, MP | Member | | 8) Sen. Mariam Sheikh Omar, MP | Member | | 9) Sen. Essy Okenyuri Nyaituga, MP | Member |

CHAIRPERSON'SFOREWORD

The County Allocation of Revenue Bill, 2026 (Senate Bills No. 10 of 2026) was published vide Kenya Gazette Supplement No.107 of 30th April, 2026. The Bill was rcad a First Time in the Senate at its sitting held on Thursday, 14th May, 2026. Thercafter, pursuant to standing order 145 of the Senate Standing Orders, the Bill was committed to the Standing Committee on Finance and Budget for consideration.

The County Allocation of Revenue Bill, 2026 (Senate Bills No. 10 of 2026) has been preparcd in accordance with Article 218(1)(b) of the Constitution. The Bill divides among the counties the revenue allocated to the county level of government through the Division of Revenue Act, 2026. The Act provides Ksh.428 billion as the county cquitable share for FY 2026/2027.

The First Schedule to the Bill divides the county equitable share among counties in accordancewiththefourthbasisofrevenueallocationunderArticle2i7ofthe Constitution.

The Second Schedule to the Bill provides the indicative recurrent expenditure ceilings for the county assemblies and the county executives for FY 2026/2027 as proposed by the CommissiononRevenueAllocation(CRA).

In compliance with the provisions of standing order 145(5) of the Senate Standing Orders, and Article 118 of the Constitution, the Committee proceeded to undertake public participation on the Bill. In this regard, the Committee published an advertisement in the Daily Nation and Standard Newspapers on Thursday, 2ist May, 2026, inviting members of the public to submit written memoranda to the Committee on the Bill. The Committee received submissions from several stakeholders, including-

• a)theNational Treasury and EconomicPlanning;
• b)the Council of Governors;
• c) the Commission on Revenue Allocation;
• d)the County Assembly of Kiambu, Uasin Gishu, Kakamega, Migori, Garissa, Kisumu, Marsabit, Taita/ Taveta, Laikipia, Kitui and Nairobi City.

The Committee considered the Bill and made the following observations. That -

• a)The CRA indicated that in developing the recurrent expenditure ceilings recommcndations, Circulars and gazette notices from SRC issued from

• time to time, various Court determinations,IEBC Gazette notices on election outcomes, Senate and other stakeholders'feedback were taken into account. In line with this, analysis revealed that county assemblies with high representation (Number of wards and number of MCAs) had the highest expenditure ceilings, with some going beyond a billion shillings.
• b) The sharing of the revenue among the county governments for FY 2026/27ofKsh.428.0billion is based on theFourthBasis.The application of theFourthBasis shows that,Ksh.387.425billionwill be shared as previously received by counties, Ksh.4.46 billion is shared equally among Twelve (12) identified counties and Ksh.36.115 billion is shared among all the counties through an allocation ratio derived from population weighted at 45%, Poverty Index weighted at 12%, Geographical Size Indexweighted at8% andBasicShareindexweighted at 35%.

The Committce having considered the Bill and stakeholders? submissions, recommends that the Senate approves the Bill with amendments to-

• a) the First Schedule to the Bill to allocate KSh.428 billion among the countiesand
• b) the Second Schedule to the Bill to reflect adjusted recurrent expenditure ceilings for the county assemblies.

Acknowledgement

The Committee appreciates all thestakeholderswhosubmittedwrittenmemoranda and who appeared before the Committee to present their comments on the Bill.

I thank the offices of the Speaker and the Clerkof theSenatefor the support extended to the Committee in undertaking this important assignment.

Lastly, I take this opportunity to commend the Members of the Committee for their devotion and commitment to duty, which made the consideration of the County Allocation of Revenue Bill, 2026(Senate Bills No.10 of 2026) successful.

It is now my pleasant duty, pursuant to standing order 148(1) of the Senate Standing Orders to present the Report of the County Allocation of Revenue Bill, 2026 (Senate Bills No. 10 of 2026).

90

202 6

Signatur&...

o.w..Date

SEN. (CAPT.) ALI IBRAHIM ROBA,EGH, MP, CHAIRPERSON, STANDINGCOMMITTEEONFINANCEANDBUDGET

ADOPTIONOFTHEREPORTOFTHESTANDINGCOMMITTEEON FINANCEANDBUDGETONTHECOUNTYALLOCATIONOFREVENUE BILL,2026(SENATEBILLSNO.10OF2026)

We, the undersigned Members of the Senate Standing Committee on Finance and Budget, do hereby append our signatures to adopt this Report-

| | Name | Designation | Signature | |----|---------------------------------------|-------------------|-------------| | 1. | Sen.Capt.Ali Ibrahim Roba, EGH, MP | Chairperson | | | 2. | Sen.MaureenTabithaMutinda,CBS, MP | Vice- Chairperson | | | 3. | Sen. (Dr.) Boni Khalwale, CBS, MP | Member | m | | 4. | Sen. Mohamed Faki Mwinyihaji, CBS, MP | Member | | | | Sen.Richard Momoima Onyonka, MP | Member | 5. | | | Sen.Shakila Abdalla Mohamed,MP Member | | 6. | | | Sen. Eddy Gicheru Oketch, MP Member | | 7. | | 8. | Sen. Mariam Sheikh Omar, MP | Member | | | 9. | Sen. Essy Okenyuri Nyaituga, MP | Member | |

CHAPTERONE

OVERVIEW OF THECOUNTY ALLOCATION OF REVENUEBILL,2026 (SENATE BILLS NO. 10 OF 2026)

1.0Introduction

1. County Allocation of Revenue Bill is prepared in accordance with Article 218(1)(b)oftheConstitution.Atleast twomonthsbeforetheendofeachfinancial year, a County Allocation of Revenue Bill should be introduced in Parliament, outlininghowtherevenueallocated to thecountylevelofgovernmentwillbe shared among the counties. Revenue sharing among the county governments is informcd by the basis in place developed by Parliament in accordance with Article 217(1). 2. In developing the basis for sharing revenue among counties, Parliament is required to take into account several considerations. These include taking into account the criteria set out in Article 203(1) of the Constitution; seeking and considering recommendations from the Commission on Revenue Allocation; consulting with county governors, the Cabinet Secretary responsible for finance, and any county government organization, the public, including professional bodies. The current basis is the fourth basis that was approved by Parliament for sharing revenue between FY 2025/26 to FY 2029/30.

1.1 Analysis of the County Allocation of Revenue Bill (CARB), 2026.

3. The County Allocation of Revenue Bill, 2026 (Senate Bills No. 10 of 2026) was published on 30th April, 2026. The Bill was introduced in the Senate and read a First Time on 14th May, 2026 and committed to the Standing Committee on Finance and Budget pursuant to standing order 145 ofthe Senate Standing Orders. The Committee was required to facilitate Public Participation on the Bill and prepare a report for tabling in the Senate. 4. The bill consists of ten (10) clauses and two schedules. The Clauses detail the structure and provisions of the bill and the Schedules give the specific amount cach county is allocated as an equitable share (First Schedule) and the recurrent budget ceilings for county executives and assemblies (Second Schedule). 5. The bill as published proposed to share a total Ksh.454.74 billion among county governments for the FY 2026/27 as an equitable share of the revenue raised

• nationally.TheKsh.454.74 billionwas the allocation recommended by theSenate during its consideration and approval of the Budget Policy Statement for FY 2026/2027 2026. The amount comprised an increase of Ksh.39.74 billion from the baseline allocation of Ksh.415.0 billion shared among counties in the FY 2025/2026.
• 6.The sharing of the revenue in the CARB, 2026 is based on Fourth Basis approved by Parliament in 2025.

7. The three components contained in the Fourth Basis are as follows;

• i.The Baseline Allocation Ratio: The baseline allocation accounts for Ksh.387.425 billion being shared among the 47 counties as per their allocationin FY 2024/25.This is toensure counties areheld harmless and maintain predictability in their budgets.
• ii. The Affirmative Action Allocation: This component provides for equal sharing ofKsh.4.46 billion among the 12 smaller counties that were found size. This action was meant to bridge disparities among the said counties and ensure equitable distribution of resources across all counties. The twelve counties include: Elgeyo/Marakwet, Embu, Isiolo, Kirinyaga, Laikipia, Lamu, Nyamira, Nyandarua, Samburu, Taita/Taveta, TharakaNithi and Vihiga with each county meant to receive Ksh.371.7million.
• iii. The FourthBasisindices:this entails theapplication of the indices derived from the four parameters namely; Population (45%); Basic Share index (35%); Poverty Index (12%); and Ge0graphical Size (8%).

8. Following the passage of the Division of Revenue Bill, 2026 the county governments? equitable share is Ksh.428 billion. The application of the Ksh.428 billion under the Fourth Basis indicates that after netting off the baseline allocationofKsh.387.425billionandtheAffirmativeActionAllocationof Ksh.4.46 billion, the amount that is shared through the indices is Ksh.36.115 billion. 9. In general, the average revenue growth in equitable share to the County govcrnmcnts is 3.1 percent, representing the equitable share of Ksh.13 billion, from Ksh.415 billion to Ksh.428 billion. However, the growth is shared

• growth above the 3.1 percent average, while 12 counties recorded growth below this average.

10. The highest growth rates were recorded in Garissa (3.7%), Marsabit (3.5%), Kajiado (3.5%), Kericho (3.4%), Lamu (3.4%), and Isiolo (3.4%). On the other hand, the lowest growth from the previous year's allocation was observed in Kisii (2.9%), Kakamega (2.9%), Kilifi (2.8%), Kwale (2.8%), Turkana (2.7%), and Mandera (2.6%). 11. In absolute terms, the counties with the highest revenue increases include Nairobi, with an additional Ksh.696.5 million, Nakuru-Ksh.443.3million, KiambuKsh.437.6 million, Kakamega-Ksh.390.5 million; Turkana-Ksh.382 million; and Bungoma-Ksh.375 million. Further analysis reveals that 12 counties recorded revenue increases of less than Ksh.200 million, with Lamu County receiving the smallest amount at Ksh.130.2 million.

Table 1:Comparison of allocations to cach County Government forFY 2025/26 and FY 2026/27.

| SN | County | FY2025/26 | FY2026/27 | Increase | |------|-----------------|----------------|----------------|-------------| | | Baringo | 7,083,683,384 | 7,308,538,764 | 224,855,380 | | 2 | Bomet | 7,447,200,499 | 7,690,203,903 | 243,003,404 | | 3 | Bungoma | 11,838,054,666 | 12,213,393,358 | 375,338,692 | | 4 | Busia | 7,956,564,058 | 8,204,938,281 | 248,374,224 | | 5 | Elgeyo-Marakwet | 5,515,146,712 | 5,693,287,501 | 178,140,789 | | 6 | Embu | 6,077,441,672 | 6,266,341,359 | 188,899,687 | | 7 | Garissa | 8,877,784,676 | 9,208,106,330 | 330,321,654 | | 8 | Homa-Bay | 8,646,376,063 | 8,914,134,592 | 267,758,530 | | 9 | Isiolo | 5,631,357,298 | 5,820,428,671 | 189,071,373 | | 10 | Kajiado | 8,894,254,886 | 9,203,151,126 | 308,896,240 | | 11 | Kakamega | 13,674,848,566 | 14,065,352,058 | 390,503,491 | | 12 | Kericho | 7,178,668,356 | 7,426,240,914 | 247,572,559 | | 13 | Kiambu | 13,071,817,986 | 13,509,437,586 | 437,619,600 | | 14 | Kilifi | 12,813,396,770 | 13,175,334,595 | 361,937,825 | | 15 | Kirinyaga | 6,151,661,892 | 6,337,662,004 | 186,000,112 |

| SN | County | FY2025/26 | FY2026/27 | Increase | |------|---------------|----------------|----------------|-------------| | 16 | Kisii | 9,819,721,768 | 10,108,734,057 | 289,012,288 | | 17 | Kisumu | 8,902,026,938 | 9,181,372,763 | 279,345,825 | | 18 | Kitui | 11,503,907,837 | 11,851,440,460 | 347,532,624 | | 19 | Kwale | 9,078,699,643 | 9,333,631,268 | 254,931,625 | | 20 | Laikipia | 6,104,082,008 | 6,298,325,916 | 194,243,908 | | 21 | Lamu | 3,857,621,205 | 3,987,831,441 | 130,210,236 | | 22 | Machakos | 10,179,132,681 | 10,506,401,278 | 327,268,597 | | 23 | Makueni | 8,976,335,654 | 9,245,743,223 | 269,407,569 | | 24 | Mandera | 12,265,064,993 | 12,588,136,749 | 323,071,756 | | 25 | Marsabit | 8,105,669,078 | 8,391,662,265 | 285,993,186 | | 26 | Meru | 10,553,946,059 | 10,896,791,506 | 342,845,448 | | 27 | Migori | 8,883,939,719 | 9,164,503,127 | 280,563,408 | | 28 | Mombasa | 8,383,385,281 | 8,655,427,079 | 272,041,798 | | 29 | Murang'a | 7,969,464,876 | 8,226,820,359 | 257,355,483 | | 30 | Nairobi City | 21,417,128,397 | 22,113,620,446 | 696,492,049 | | 31 | Nakuru | 14,455,147,658 | 14,898,407,452 | 443,259,794 | | 32 | Nandi | 7,771,778,066 | 8,011,197,944 | 239,419,878 | | 33 | Narok | 9,770,317,146 | 10,067,523,987 | 297,206,842 | | 34 | Nyamira | 6,073,434,356 | 6,265,653,089 | 192,218,734 | | 35 | Nyandarua | 6,662,675,631 | 6,862,041,197 | 199,365,566 | | 36 | Nyeri | 6,896,132,673 | 7,108,453,869 | 212,321,196 | | 37 | Samburu | 6,336,970,364 | 6,529,355,285 | 192,384,921 | | 38 | Siaya | 7,754,478,885 | 8,009,251,583 | 254,772,697 | | 39 | Taita-Taveta | 5,760,449,685 | 5,941,906,759 | 181,457,074 | | 40 | Tana-River | 7,222,474,730 | 7,446,174,779 | 223,700,049 | | 41 | Tharaka-Nithi | 5,058,286,293 | 5,219,759,236 | 161,472,943 | | 42 | Trans-Nzoia | 7,991,120,837 | 8,244,551,895 | 253,431,058 | | 43 | Turkana | 13,892,577,371 | 14,274,615,989 | 382,038,618 |

| SN | County | FY2025/26 | FY2026/27 | Increase | |------|-------------|-----------------|-----------------|----------------| | 44 | Uasin-Gishu | 8,977,014,770 | 9,260,813,408 | 283,798,638 | | 45 | Vihiga | 6,008,751,224 | 6,202,310,291 | 193,559,067 | | 46 | Wajir | 10,507,580,683 | 10,847,713,122 | 340,132,440 | | 47 | WestPokot | 7,002,426,008 | 7,223,277,137 | 220,851,128 | | | Total | 415,000,000,000 | 428,000,000,000 | 13,000,000,000 |

1.2 County Govcrnment Budget Ceilings on Recurrent Expenditure for FY 2026/27.

12. The sccond schedule of the bill provides the indicative recurrent expenditure ceilings for the County Assemblies and the County Executives as proposed by the Commission on Revenue Allocation (CRA). Analysis indicates that the overall ceilings for County Assemblies have reduced by Ksh.744.3 million from the approved Ksh.39.9 billion for FY 2025/26 to Ksh.39.2 billion proposed for FY 2026/27. Further, the recurrent ceilings for the executive have increased by Ksh.1.84 billion (7.8 % increase) from an allocation of Ksh.23.4 billion in FY 2025/26toKsh.25.3billionforFY 2026/27. 13. The Ksh.744.3 million reductions in recurrent spending for County Assemblies is attributable to 21 County Assemblies. Among those with largest proposed cuts are Kisumu (Ksh.193.4 million), Kakamega (Ksh.157.2 million), Mombasa (Ksh.126.5 million), Uasin Gishu (Ksh.119.9 million) and Makueni (Ksh.116.8 million). Other county assemblies with notable budget reductions include Kiambu (Ksh.98.8 million), Bungoma (Ksh.97.7 million), Tana River (Ksh.97.4 million), Isiolo (Ksh.56.7 million) and Wajir (Ksh.54.9 million). This reduction would be attributed to netting-off of the one-off allocations approved by the Senate for specific projects undertaken in FY 2025/26. 3. 14.Despite the proposed reductions, 26 county assemblies have their recurrent budgets been enhanced from the allocations of FY 2025/26. The overall increase to the 26 county assemblies2amounts toKsh.524million.The County Assemblies with the highest increase include; Turkana-Ksh.82.4 million, Mandera-Ksh.56.4 million, Marsabit-Ksh.51.1million, Narok-Ksh.48.7million and Murang'aKsh.37.8 million. Baringo and Vihiga county assemblies received minimal increases of Ksh.157,732 and Ksh.185,646 respectively.

Table 2: Comparison of recurrent expenditure budgets County Assemblies for FY 2025/26andFY2026/27.

| SN | CountyAsscmbly | Approved-FY2025/26 | Proposed-FY2026/27 | |------|------------------|----------------------|----------------------| | 1 | Baringo | 847,469,122 | 847,626,854 | | 2 | Bomet | 755,816,719 | 731,537,286 | | 3 | Bungoma | 1,074,221,694 | 976,506,613 | | 4 | Busia | 859,603,045 | 869,947,142 | | 5 | Elgeyo-Marakwet | 682,127,598 | 684,431,351 | | 6 | Embu | 653,997,909 | 651,091,348 | | 7 | Garissa | 1,010,212,868 | 995,206,383 | | 8 | Homa-bay | 901,349,007 | 913,968,214 | | 9 | Isiolo | 571,957,767 | 515,234,218 | | 10 | Kajiado | 797,493,878 | 833,655,216 | | 11 | Kakamega | 1,440,150,864 | 1,282,977,973 | | 12 | Kericho | 801,439,308 | 808,829,560 | | 13 | Kiambu | 1,332,680,576 | 1,233,843,597 | | 14 | Kilifi | 871,651,828 | 867,147,393 | | 15 | Kirinyaga | 667,134,062 | 666,664,869 | | 16 | Kisii | 1,051,143,180 | 1,061,001,255 | | 17 | Kisumu | 993,261,872 | 799,826,065 | | 18 | Kitui | 1,025,218,850 | 1,007,699,946 | | 19 | Kwale | 667,152,528 | 675,305,556 | | 20 | Laikipia | 511,501,082 | 526,142,878 | | 21 | Lamu | 502,735,064 | 479,609,506 | | 22 | Machakos | 957,194,136 | 970,874,933 | | 23 | Makueni | 964,631,315 | 847,824,561 | | 24 | Mandera | 917,936,058 | 974,349,992 | | 25 | Marsabit | 741,494,088 | 792,562,104 | | 26 | Meru | 1,033,230,263 | 1,040,373,863 | | 27 | Migori | 936,954,113 | 941,149,982 | | 28 | Mombasa | 862,807,953 | 736,274,590 | | 29 | Murang'a | 813,710,947 | 851,528,548 | | 30 | Nairobi City | 1,603,909,510 | 1,569,710,435 | | 31 | Nakuru | 1,121,659,233 | 1,139,437,714 | | 32 | Nandi | 811,140,379 | 797,267,097 | | 33 | Narok | 878,624,509 | 927,319,735 | | 34 | Nyamira | 689,414,409 | 698,351,387 | | 35 | Nyandarua | 758,345,693 | 785,219,049 | | 36 | Nyeri | 760,288,009 | 763,643,931 | | 37 | Samburu | 569,616,860 | 605,962,163 | | 38 | Siaya | 759,893,500 | 770,412,462 | | 39 | Taita-Tavcta | 706,797,720 | 694,446,178 | | 40 | Tana-River | 710,218,891 | 612,807,695 |

| SN | CountyAssembly | Approved-FY2025/26 | Proposed-FY2026/27 | |------|------------------|----------------------|----------------------| | 41 | Tharaka-Nithi | 508,533,605 | 513,863,636 | | 42 | Trans-Nzoia | 664,759,854 | 663,677,259 | | 43 | Turkana | 863,842,883 | 946,217,760 | | 44 | Uasin-Gishu | 887,273,308 | 767,346,325 | | 45 | Vihiga | 703,918,304 | 704,103,951 | | 46 | Wajir | 992,853,943 | 937,865,189 | | 47 | West-Pokot | 699,024,354 | 711,194,510 | | | Total | 39,936,392,658 | 39,192,038,271 |

• 15.An analysis of the proposed recurrent expenditure for county government executives for the FY 2026/27 reveals a general upward trend in budgets across all 47 county cxccutives. While most county executives recorded increases within the average percentage rise of 7.8%, two counties stand out with notably larger growths. Samburu County's Executive budget rose from Ksh.400.6 million to Ksh.633.2 million, marking a 58.1% increase. Similarly, Kisumu County's Executive budget was adjusted upward by Ksh.116.1 million, a 22.2% rise from Ksh.522.1 million toKsh.638.2 million.
• 16.Further analysis shows that, several county executives received marginal increases of less than Ksh.25 million. These include Isiolo (Ksh.21.7 million), Lamu (Ksh.21.7 million), Laikipia (Ksh.24.4 million), Tharaka-Nithi (Ksh.24.4 million), and Tana-River (Ksh.24.5 million).

Table 3: County executives'recurrent ceilings for FY 2025/26 & FY 2026/27.

| S N | County | Approved-FY 2025/26 | Proposed-FY 2026/27 | |-------|-----------------|-----------------------|-----------------------| | 1 | Baringo | 496,161,163 | 528,170,814 | | 2 | Bomet | 468,730,626 | 498,289,418 | | 3 | Bungoma | 562,059,982 | 601,422,211 | | 4 | Busia | 514,728,802 | 549,189,312 | | 5 | Elgeyo-Marakwet | 445,655,740 | 472,763,673 | | 6 | Embu | 445,585,855 | 472,693,787 | | 7 | Garissa | 510,888,235 | 544,919,368 | | 8 | Homa-bay | 538,863,664 | 575,775,034 | | 9 | Isiolo | 376,492,992 | 398,239,140 | | 10 | Kajiado | 459,200,063 | 488,452,144 | | 11 | Kakamega | 631,900,264 | 678,615,072 | | 12 | Kericho | 491,924,215 | 523,933,866 | | 13 | Kiambu | 642,094,266 | 688,809,074 | | 14 | Kilifi | 528,153,096 | 562,613,607 | | 15 | Kirinyaga | 436,378,706 | 463,333,283 | | 16 | Kisii | 569,351,784 | 608,714,014 | | 17 | Kisumu | 522,102,171 | 638,237,442 | | 18 | Kitui | 556,906,939 | 593,818,310 |

| S N | County | Approved-FY 2025/26 | Proposed -FY 2026/27 | |-------|---------------|-----------------------|------------------------| | 19 | Kwale | 447,387,205 | 474,495,138 | | 20 | Laikipia | 406,459,778 | 430,810,140 | | 21 | Lamu | 373,334,857 | 395,081,004 | | 22 | Machakos | 540,775,483 | 577,686,853 | | 23 | Makueni | 494,768,774 | 526,778,425 | | 24 | Mandera | 511,948,091 | 543,957,742 | | 25 | Marsabit | 458,101,332 | 490,972,864 | | 26 | Meru | 565,023,558 | 604,385,788 | | 27 | Migori | 538,507,125 | 575,418,495 | | 28 | Mombasa | 497,268,190 | 529,277,841 | | 29 | Murang'a | 515,207,988 | 549,668,499 | | 30 | Nairobi City | 775,756,999 | 834,726,105 | | 31 | Nakuru | 622,626,699 | 666,890,648 | | 32 | Nandi | 492,132,433 | 524,142,084 | | 33 | Narok | 499,621,001 | 531,630,652 | | 34 | Nyamira | 444,949,706 | 472,057,639 | | 35 | Nyandarua | 469,042,680 | 498,601,472 | | 36 | Nyeri | 492,365,209 | 524,374,860 | | 37 | Samburu | 400,557,424 | 633,218,705 | | 38 | Siaya | 491,970,700 | 523,980,352 | | 39 | Taita-Taveta | 450,325,811 | 477,433,743 | | 40 | Tana-River | 422,272,274 | 446,775,992 | | 41 | Tharaka-Nithi | 404,731,372 | 429,081,734 | | 42 | Trans-Nzoia | 474,454,626 | 504,013,417 | | 43 | Turkana | 510,888,235 | 551,543,287 | | 44 | Uasin-Gishu | 498,842,007 | 530,851,658 | | 45 | Vihiga | 467,917,374 | 497,476,165 | | 46 | Wajir | 502,524,835 | 542,527,721 | | 47 | West-Pokot | 447,670,353 | 474,778,286 | | | Total | 23,414,610,682 | 25,250,626,877 |

2.0 Introduction

• 17.Pursuant to the provisions of Article 118 of the Constitution and standing order 145 of the Senate Standing Orders, the Committee published an advertisement on Thursday, 21st May, 2026 inviting members of the public to submit their comments on the Bill. In this respect, the Committee received submissions from thefollowingstakeholders-
• a) National Treasury and Economic Planning;
• b) Commission on Revenue Allocation;
• c) Council of Governors;
• d) County Assemblies Forum (CAF);
• e)Mau Mau Children Post-Colonial Elites;
• f)The County Assemblies of-

• -Kitui

• Marsabit

• Uasin Gishu

• Migori

• Kisumu

• Laikipia

• Kiambu

• Garissa

• Kakamega

• Taita/ Taveta

• Nairobi City

2.1 Submissions by National Treasury and Economic Planning

18. National Treasury and Economic planning submitted the following-

• a) Clause 5, on budgct ceilings for recurrent expenditure- The Treasury agreed with the inclusion of the new clause 5, which explains the Second Schedule providing recurrent cxpenditure ceilings for County Executives and County Assemblies in line with Fiscal Responsibility Principles under the PFM Act. However, Treasury observed that, since Article 176(1) defines a county government as comprising both the County Assembly and the County Executive, the ceiling as provided is related only to the County Executive Committee and not the entire County Executive, and recommended that Clause 5 be amended accordingly.
• b) Clause 6 on funding for transferred functions- The National Treasury noted that the new clause 6, which provides for determination, appropriation and reporting of costs where a county function is transferred to the National Government under

CHAPTERTWO

SUBMISSIONSBYSTAKEHOLDERS

Article 187, is consistent with the constitutional provisions on transfer of functions. However, that they are not aware of any such transfer having occurred to warrant the clause's inclusion,and recommended that,should such a transfer occur, the clause should additionally provide for financial management of the transferred function, including budgeting, accounting, oversight and funds flow.

• c) First Schedule, on Equitable Share Allocation- The National Treasury noted that the First Schedule allocates the equitable share to counties based on the Fourth Revenue Sharing Basis approved by Parliament under Article 217, consistent with the basis approved for FY 2025/2026 to FY 2029/2030. They observed that, while the Treasury had proposed Ksh.420 billion as the equitable share in the Division of Rcvenue Bill, 2026 and the 2026 Budget Policy Statement, the Senate Billhad allocated Ksh.454.7 billion, and therefore finalisation of the CARB,2026shouldbesubjecttothedeterminationofthecounty equitableshare
• d) Second Schedule - Budget Ceilings for County Executives and County Assemblies- The National Treasury noted that the Second Schedule provided total rccurrent cxpcnditure ceilings of Ksh.39.2 billion for the 47 county asscmblies and Ksh.25.3 billion for the 47 county executives for FY 2026/27. While agreeing with the inclusion of the Schedule, they recommended that the financial years be corrected to read FY 2025/26 and FY 2026/27 respectively, and that the Schedule's heading be amended to clarify that the ceilings related to the County Executive Committees, consistent with the observation on clause 5.

2.2 Submissions by Commission on Revenue Allocation (CRA)

19. The Commission on Revenue Allocation (CRA) submitted the following-

• a) They recommended that the financial years referenced in the Second Schedule be corrected: column 2 (County Assembly ceilings) from FY 4 (County Executive ceilings) from FY 2024/25 to FY 2025/26; and column 5fromFY2025/26toFY2026/27.
• b) The CRA noted that, in addition to their recommendation on County Governments' Recurrent Expenditure Budget Ceilings for FY 2026/27 alrcady submitted to the Senate on 13th January 2026, some County Assemblies and one County Executive had separately submitted requests to

• the CRA for additional funds, and they accordingly forwarded their recommendations on these requests (vide its letter dated 11th March 2026) for the Senate's consideration, noting that the Bill had not factored in this additional recommendation.
• county executive had submitted requests for additional recurrent expenditure budget ceilings for FY 2026/27, and that they had conducted visits to selected County Asscmblies to assess the status of the issues raised, in order to support objective decision-making.
• d) The Commission reported submissions on pending bills from six counties (Nakuru, Migori, Embu, Nairobi, Marsabit and Kakamega) totalling Ksh.2,355,683,003, but noted that the reduction of ceilings in FY 2024/25 was a cross-cutting issue affecting all 47 counties, that a one-off allocation had already been provided in FY 2021/22 to settle pending bills, and that they wcre therefore unable to grant additional funding for this request, leaving the matter to the Senate's discretion.
• e) ICT-Related Requests- The Commission recommended that ICT allocations be capped at Ksh.20,000,000 per County Assembly based on market cost analysis, with requests above the cap rationalized down to it and requests below the cap approved at the amount requested.
• f) Public Participation- The Commission noted that the current framework supported only six documents under public participation, which several counties found inadequate given the volume of bills (especially on Own Source Revenue), and resolved to review this threshold when developing the FY 2027/28ceilings.
• g) County Staff Capping- The Commission stated it would engage counties to establish current staff composition and numbers, in consultation with the Salaries and Remuneration Commission (SRC), to determine optimal staffing levelsforFY2026/27.
• h) Security/Contracted Guards- The Commission noted requests for security staffing for newly built ward offices, indicated it would assess these needs ahead ofthe FY 2027/28 ceilings, and guided that current security guard costs be catercd for under operations and maintenance.

• i)Hansard, E-Parliament, Broadcasting, E-Voting, Committee Audio-Visual and EDMS- The Commission reported that it had developed and adopted a costing framework for these items based on Senate benchmarks, which was applicd uniformly across County Assemblies.
• j) Purchase of Motor Vehicles- The Commission recommended that County Assemblies' motor vehicle purchases be capped at Ksh.50,000,000 or the actual amount requested, whichever was lower, due to prevailing budgetary constraints.
• k) Maintenance of Chambers and County Buildings- The Commission recommcnded capping maintenance costs at 5% of approved construction cost, as guided by the State Department for Public Works, and provided indicative construction cost benchmarks for the Speaker's residence (Ksh.35,000,000) and for chambers and MCA offices by Assembly size (ranging from Ksh.400,000,000 for Type 1 to Ksh.750,000,000 for Type 3 Assemblies).
• 1)Furniture and Fittings- The Commission stated it had visited furniture workshops to establish current prices and cost benchmarks for furniture costing.
• m) General Insurance- The Commission recommended that general insurance for County Assembly properties and equipment be provided for under Opcrations and Maintenance expenditure to ensure sustainability and asset protection.
• n) Refurbishmcnt of Chambers, Ward Offices and Speaker's Residences- The Commissionrecommended thatrefurbishmentrequestsbesubjected toonsite assessment to determine the condition and scope of required works, with allocations based on the assessment findings.
• o)Medical Insurance for PartisanStaff-TheCommission found this not fcasible, since partisan staff are remunerated through MCAs, and resolved to communicate this position to the County Assemblies Forum, copying the Senate.
• p) Salary adjustment for State Officers- The Commission noted that several

• rccommcnded that FY 2026/27 ceilings be adjusted accordingly once SRC circulars were received.
• q) Completion of County Assembly Complexes- The Commission noted that, although completion of chambers, offices and ward offices constitutes development expenditure outside its mandate, three counties had sought funding for this purpose: Embu (Ksh.132,000,000 to complete a complex that was 62% done against a contract cost of Ksh.349 million, while incurring Ksh.12,000,000 annually in office rent); Samburu (Ksh.179,000,000 for furnishing and completion of assembly chambers, plus Ksh.60,000,000 for ward offices); and Nakuru (Ksh.350,000,000 for construction of MCA offices within the headquarters complex). The Commission recommended that the Senate review such pending non-core infrastructure projects to ensure timely completion and value for money.
• r) Overall, against a total request of Ksh.6,490,984,706 from nineteen County Asscmblies (five not visited, totaling Ksh.266,731,733, and fourteen visited, totalling Ksh.6,224,252,973), the Commission recommended a total of Ksh.1,138,287,534 (Ksh 93,500,000 for assemblies not visited and Ksh.1,044,787,534 for those visited), covering items such as ICT systems, EParliament, motor vehicles, asset valuation, furniture, chamber refurbishmcnt, Hansard systems, generators, solar panels, libraries, lifts, and legal pending bills, as detailed in the accompanying summary table.

2.3SubmissionsbytheCouncilof Governors

20. The Council of Governors submitted the following;

• a)The CoG submitted that although the Senate had initially proposed Ksh.454.74 billion as the equitable share allocation to county governments for FY 2026/27, the amount was not retained during the mediation process, resulting in a final allocation of Ksh.428 billion, representing an increase of only Ksh. 13 billion. The Council argucd that the allocation is insufficient to support effective county budget implementation.
• b) The CoG requested that the cost of transitioning UHC workers, which had not been considered in the concluded Division of Revenue process, be factored into the County Governments Additional Allocations Bill (CGAAB), 2026, noting that they had previously submitted comments on the matter which were not

• initially considered in the CGAAB, 2026, and that the Senate issue guidance to county governments on the sustainability of transitioning these workers into permanentandpensionableterms.
• c) The Council further requested the Committee to: ensure timely approval of the equitable share cash disbursement schedule under Section 17(7) of the Public Finance Management Act before commencement of FY 2026/27; consider adopting a scientific methodology for determining recurrent expenditure budget ceilings, agrecable to both County Executives and County Assemblies, to avoid post-budget adjustments; and fast-track enactment of the CGAAB, 2026.
• d) The Council proposed that the First Schedule, which provides for an equitable share of Ksh.454,743,157,879, be deleted and replaced with a schedule reflecting Ksh.428,000,000,000,being the amount approved as the equitable share to countics for FY 2026/27 in theDivision ofRevenue Act,2026.
• e) The Council proposed that, since the columns in row 3 of the Second Schedule (providing County Governments' budget ceilings on recurrent expenditure for FY 2026/27) were wrongly labelled and referred to previous financial years, columns 3, 4, 5 and 6 be relabeled as FY 2025/26, FY 2026/27, FY 2025/26 and FY2026/27respectively.

2.4 Submissions by the County Assembly Forum (CAF)

21. The County Assemblies Forum (CAF) submitted the following-

• a) CAF noted that while the Division of Revenue Bill, 2026 proposed an allocation of Ksh.454.9 billion to county governments from the nationally raised sharcable revenue, marking an increase of approximately Ksh.39.7 billion from the previous financial year, the County Assemblies did not proportionately benefit from this additional allocation. Instead, CAF observed that the County Allocation of Revenue Bill, 2026 proposed to billion in FY 2025/2026 to Ksh.39.192 billion in FY 2026/2027, representing a negative deviation of Ksh.744 million.
• b) That there's unfair divergence between the two arms of county governance, while Assembly ceilings faced a reduction, the County Executive recurrent ceilings were projected to increase from Ksh.23.414 billion to Ksh.25.250 billion, translating to a positive deviation of Ksh.1.836 billion. The forum

• expressed concern that County Assemblies were the only arm of county governments experiencing a budget reduction despite expanded constitutional mandates and increased overall county allocations.
• c) That the proposed budget cuts coincided with a period when County Assemblies continued to experience significant inflationary and operational prcssures. Citing economic outlooks by the World Bank, CAF stated that Kenya remained under high fiscal pressure characterized by rising debt vulnerabilities, weak labor market outcomes, constrained fiscal space, commodity price volatility, and rising energy costs, all of which heavily impacted public institutions and service delivery.
• d) CAF highlighted that County Assemblies were shouldering additional constitutional and statutory obligations that demanded enhanced financial support. They stated that these emerging responsibilities include the implementation of the County Assembly Fund Act, enhanced public participation requirements, oversight of devolved functions, the implementation of digitization programs, increasing litigation costs, and growing committee activities.
• e)The forum provided an analysis of historical allocations since the inception of devolution, illustrating a pattern of inconsistent and frequently lower allocations for Assemblies relative to Executives. They pointed out that after reaching a peak allocation of Ksh 40.61 billion in FY 2023/2024, Assemblies suffered a sharp Ksh.4.2 billion cut in FY 2024/2025, a trend that continuously undermines the assemblies' ability to perform their constitutional roles and disrupted long-term operations.
• f)CAF notcd that in the Bill's schedule (S.6(1)), the text erroneously captured the period as FY 2025/2026 instead of accurately referencing FY 2026/2027.
• g) That the Senate should review upward the proposed County Assembly recurrcnt ccilings from Ksh.39.192 billion to reflect prevailing economic realitics, matching at least the FY 2023/2024 allocation levels.
• h) That the Senate safeguard and ring-fence County Assembly allocations to guarantee institutional independence and effective execution of constitutionalmandates.

• i)That the Senate adopt a more cquitable and objective resource allocation framework censuring that Assemblies proportionately benefit whenever additional revenue is allocated to county governments.
• j)That the Senate should support the full operationalization of the County Asscmbly Fund to strengthen financial autonomy and protect County Assemblies from undue financial dependence on County Executives.

2.5 Submissions by the Mau Mau Children Post-Colonial Elites

22. The Mau Mau Children Post-Colonial Elites submitted the following;

• a) Allocation for Historical Justice and Reparations- they recommended that counties with documented cases of historical injustices allocate a portion of their cquitable share towards verification, documentation, welfare, healthcare and memorialization programmes for affected communities.
• b) Conditional Grants for Vulnerable Groups- they proposed that the Senate include conditional grants to support vulnerable groups identified under historical rcparations frameworks, to ensure national commitments translate into county-level action.
• c) Public Participation and Transparency- Counties were urged to publish allocations for historical justice and reparations in their budget documents and report on implementation annually to County Assemblies and the public.
• d) Historical Justice and Reparations Framework- they recommended that thc National Treasury and Council of Governors develop a framework for conditional grants to support counties in implementing historical justice memorialization for aging veterans and their families.
• e) Benchmarking for Historical Justice Frameworks and PBORA Capacity Building- Resources were sought to enable PBORA to undertake benchmarking visits to France, UK, USA, Canada, Italy and Vatican City, whose mature charity regulators and historical justice frameworks offer lessons on digital registration, risk-based compliance, data transparency and co-regulation, with a report to be tabled before Parliament within 90 days of return.

• f)They further recommended that funds be disbursed as conditional grants with quarterly reporting to the Senate and County Assemblies, implemented by County Governments with community and PBORA participation, and aligned with Articles 56 and 260 of the Constitution on minority rights and historical injustices.

2.6 Submission by County Assemblies

23. The following County Assemblies submitted their requests for adjustment of the budget ceiling on the Bill as follows-

2.6.1CountyAssemblyofNairobiCity

• 24.The county asscmbly of Nairobi requested an enhancement of its recurrent expenditure ceilings for the Financial Year 2026/2027, citing eight areas of significant financial need arising from the Assembly's evolving operational requirements;
• a)Staff establishment- that CRA had been factoring 133 staff members in determining the expenditure ceilings since FY 2013/14. However, a review 2017 by Deloitte and Touche consulting firm, and further approved by the SRC, concluded that the Assembly requires a minimum workforce of 276 staff mcmbers. The Assembly currently employs 200 staff at a cost of Kshs.311.2 million, leaving a staffing deficit of 76 officers. To fully implement the revised staffing structure, an additional Kshs.369,000,000 is rcquired for staff emoluments, exclusive of MCA emoluments.
• b) SRC Review of 4th Remuneration Benefits Cycle FY 2025/25-28/29- The SRC reviewed the Phase IV salary structure resulting in a combined reviewed budgctary constraints and the assembly requested an upward review of its cxpenditure ceiling by Kshs.70,750,800 to enable compliance with the SRC Circular effective1st July 2025.
• c) SRC Revicw on Mileage Allowance- The SRC, vide circular Ref. SRC/TC/31(89), reviewed the mileage claim remunerations for Members of County Assembly. The Assembly had allocated Kshs.6,015,926 for mileage

• claims in FY 2025/26 but with the revised rates would require Kshs.36,489,350, necessitating an additional ceiling of Kshs.72,978,700.
• d) SRC Circular on Transport Allowance- The SRC, vide circular Ref. No. SRC/TS/29/30 Vol.1(6) dated 8th December 2025, advised the County Members and staff using pool vehicles, and where official transport was unavailable, reimbursement of actual transport costs at prevailing AA rates. Having reviewed its transport needs for FY 2026/27, the assembly cstablished that it would require an additional Kshs.176,250,000 to cater for MCAs and staff transport needs in compliance with the guideline.
• e) Review of Ward Operating Costs- The CRA had capped ward office operational costs at Kshs.127,436, which included salaries for three staff members and maintenance costs. Due to high rental costs in Nairobi, the currcnt cap was insufficient to cover these expenses, with the Ngara ward office alone having a rent of Kshs.53,000 which exceeded the current cap. An additional Kshs.150,000 per ward per quarter, totaling Kshs.51,000,000 annually, was sought to accommodate the rising costs of office rent and operations acrossthe85ward offices.
• f)Administration of Motor Vehicle reimbursement benefits for Members-The SRCconferredmotor vehiclereimbursementbenefit toMembersof the Assembly, necessitating an appropriation of Kshs.274.3 million. The Asscmbly had implemented this benefit gradually, allocating Kshs.68.65 million annually, resulting in not all Members having benefited. Additionally, following a by-election in Kariobangi North Ward, the asscmbly was required to facilitate the new Member with all his benefits. An additional Kshs.93,212,000 was needed to complete the implementation of thebenefit.
• g) Medical Cover for Ward Staff- The Assembly had incorporated the 372 Ward staff scrving the 124 Members into the Human Resource Integrated Payroll System (HRIS-KE), following a directive by the Head of Public Service, and intended to fully onboard all ward staff and their dependents onto a comprchcnsive medical cover scheme in compliance with section 34(2) of

• the Employment Act, 2007. To fully implement medical cover forward staff, the assembly requires Kshs.120,000,000.
• h) Legal Services Pending Bills and Contingent Liabilities- The County Assembly had accumulated pending legal fees totaling approximately Kshs.1,375,139,845.15 arising from legal representation and settlement of court awards, and continued to face contingent legal liabilities from ongoing lcgislative drafting requiring engagement of external legal experts at an estimated Ksh. 45,000,000 per annum.

25. Further, after the meeting with the Committee on Thursday, 11th June, 2026, the County Asscmbly of Nairobi City submitted the following additional information;

• a) Update on legal services pending bills- The Assembly reported that, pursuant to two rulings of the High Court Anti-Corruption and Economic Crimes Divisionsharedwiththemon9thJune2026,twoof thetaxationmatters previously listed as items 6 and 7 on page 7 of the original memorandum had since been taxcd off to Ksh.828,727.20 (in HCACEC Misc. E036/2025) and Ksh.413,215.20 (in HCACEC Misc. E037/2025) respectively.
• b) Thc Asscmbly submitted an amended table of pending litigation fees covering cight cases involving the Assembly and the County Assembly Scrvice Board, with a revised total of Ksh.400,836,517.04 and
• c)Thc Assembly submitted that their personnel emoluments stand at Ksh.1.1 billion, such that twice this figure (Ksh.2.2 billion) represents the applicable threshold under the Regulation 25(1)(f) of the PFM (County Governments) Rcgulations, 2015, and that the proposed ceiling falls short of this figure by that 7% of their total revenue of Ksh.37,218,106,753 (comprising Ksh.23,546,420,203 from the equitable share and Ksh.13,671,686,550 from own-source revenue as declared in October 2025) would amount to Ksh.2,605,267,472.71.

2.6.2County Assembly of Kiambu

26. The County Assembly of Kiambu submitted as follow- 2. which Ksh.125,000,000 was approved, leaving an outstanding balance of

Ksh.45,000,000 across three partially completed projects, namely the Broadcasting Unit and Media Centre (Ksh.15,000,000), the E-Parliament System (Ksh.20,000,000), and replacement of ward office furniture (Ksh.10,000,000), all of which required completion to become fully operational.

• b) Procurement of Utility Vehicles (Ksh.50,000,000)- The Assembly's fleet of 8 vehicles is largcly unserviceable (4 non-operational, 3 high-maintenance, 1 grounded), forcing costly reliance on hired vehicles; new vehicles would support committee oversight visits across all 60 wards, public participation activities and staff movement, while generating significant cost savings.
• c) Procuremcnt of Office Furniture and Equipment (Ksh.58,000,000)- To furnish and cquip the new office block once complete, including workstations, desks, chairs, storage cabinets, boardroom and Media Centre furnishings, offices for Nominated Members, and equipment such as computers, printers and scanners, addressing current overcrowding and sharedoffices.
• d) Refurbishment of Dilapidated Office Spaces (Ksh.30,000,000)- Following a Deccmber 2025 DOSHS inspection that found hazardous conditions (cracked walls, exposed wiring, broken plumbing, poor lighting and ventilation), the funds would finance structural repairs, rewiring, plumbing fixes, repainting and improved lighting/ventilation to meet occupational health and safety standards.
• e) Disability Access - Two Mini Lifts (Ksh.24,000,000)- The Clerk's and Speaker's offices, located on the first floor, are currently inaccessible to persons with mobility impairments due to lack of a ramp or lift; the funds would install passenger lifts to enable dignified access for Members, staff and the public, in line with constitutional and disability rights obligations.

5. f)Security Enhanccment (Ksh.25,000,000)- To address inadequate security infrastructure by installing a comprehensive CCTV network, baggage and parcel scanners at entry points, under-vehicle scanners at access gates, and electronic access control for sensitive areas such as the chamber and server rooms.

• g) Cafcteria Rcnovation and Equipment (Ksh.10,000,000)- The current concerns; the funds would finance structural repairs, flooring, lighting/ventilation improvements, 1 repainting, and procurement of commercial-grade kitchen and dining equipment.
• h) Parking Area Renovation and Rehabilitation (Ksh.8,000,000)- The parking area is severely potholed, posing safety risks to vehicles, pedestrians and persons with disabilities; the funds would finance full resurfacing, drainage installation, marked parking bays (including wheelchair-accessible bays), lighting and signage.

27. In total, the assembly requested for additional funding of Ksh.250,000,000.

2.6.3County Assembly of Uasin Gishu

28. The Assembly requested the Senate to adjust its budget ceiling upwards by Ksh.260,000,000, noting that its current budget of Ksh.762,248,662 represents only a 5% increase from Ksh.727,157,536 in FY 2024/2025, an increment that was mcant to cater for inflation only and is insufficient to address the additional needsoutlinedbelow;

• a) Library Equipment (Ksh.20,000,000)- To facilitate the purchase of library shelvcs and cabinets, e-library software, licences, and reading materials to support rescarch and drafting of legislation.
• b) Solar Panels Installation (Ksh.20,000,000)- For installation of solar panels at the County Assembly's Administration Block and Chambers to enhance energy efficiency, reduce operational power costs, address frequent power outages that damage electrical and electronic equipment, and promote adoption of a green energy strategy.
• c) Staff Rationalization (Ksh.58,000,000)- To implement a fair staff rationalization process as guided by the Salaries and Remuneration Commission (SRC), necessitated by employees acquiring higher academic and professional qualifications, approval of a new staff scheme by the SRC, and the proposcd remuneration for Hon. Members.
• d) Replacement of Old Computers, Laptops and Photocopiers for Employees (Ksh.15,000,000)- To replace old and worn-out ICT equipment inherited from the defunct local authorities.

• e)Establishment of Broadcasting Unit and Media Centre (Ksh.20,000,000)- In compliance with Article 196 of the Constitution, to facilitate public access to legislative proceedings and enhance transparency and civic awareness.
• (Ksh.51,000,000)- To establish E-parliament systems including mobile applications, document management, disaster recovery, and cloud storage in line with the digital transformation agenda.
• g) Gratuity Arrears for Contractual Staff (Ksh.30,000,000)- To settle arrears of gratuity for contractual staff engaged since December 2022, which has not becn budgetcd for due to inadequate allocations, noting that the next financial year is the last before their contracts expire.
• h) Asset Valuation, Tagging and Maintenance (Ksh.26,000,000)- To assist in assct valuation, tagging and maintenance in support of full implementation of accrual accounting, the growing asset base requiring automated management, and processing of ownership documents for County Assembly landparcels.
• i)Purchase of Motor Vehicle for Public Participation (Ksh.20,000,000)- To facilitate public cngagements, support committees' field visits, and project verification, necessitated by the current fleet of vehicles inherited from the defunct local authorities.

29. In total, the assembly requested for additional funding of Ksh.260,000,000.

2.6.4CountyAssemblyof Kakamega

30. The County Assembly of Kakamega submitted the following;

• a) Overall Ceiling position- The Assembly submitted that the recurrent cxpenditure ceiling of Ksh.1,282,977,973 proposed by the Commission on Rcvcnue Allocation (CRA) for FY 2026/27 do not adequately cater for mandatory and non-discretionary expenditure arising from four key cost drivers, and accordingly requested enhancement of the ceiling by Ksh.211,516,201, bringing their actual requirement to Ksh.1,494,494,174.

3. b)Funding implications of the SRC-reviewed Remuneration Structure (Ksh.13,391,916)- The Assembly explained that although the SRC's revised remuneration structure for State Officers (Gazette Notice No. 10350 of 9th August 2023) had initially been suspended due to fiscal constraints, they had since been cffected on the Government's HRIS-K payroll system from

February 2026, while the CRA's FY 2026/27 ceiling computation had relied on the older FY 2023/24 remuneration structure, creating a shortfall covering additional salary (Ksh.11,658,636) and gratuity (Ksh.1,733,280) costs, and requested that this be factored into the ceilings for all county assemblies.

• c) Ward Office Operations (Ksh.127,799,640)- The Assembly submitted that, bascd on CRA's own costing framework requiring facilitation of all 90 MCAs' ward offices at Ksh.118,333 per MCA per month, this statutory expenditure consumed approximately 37.2% of its proposed O&M allocation, leaving insufficient resources for committee activities, legislative processing and other operations, and requested that Ward Office Operations be recognized as a distinct, separately funded cost centre across all county assemblies.
• d) Staffing Capacity Variance (Ksh.52,868,352)- The Assembly, being the second largest in the country with the maximum permissible committees, submitted that the CRA staffing cap of 115 officers (Ksh.189,995,640) fell short of its actual requirement of 147 officers (Ksh.242,863,992), causing administration, and requested funding of the resulting variance plus a review of staffing assumptions for larger assemblies.
• e) Insurance Funding Shortfall (Ksh.17 ,456,293)- The Assembly submitted that CRA's insurance provision of Ksh.48,632,667 fell short of its projected rcquircmcnt of Ksh.66,088,960 (covering medical, group personal accident/WIBA, group life, motor vehicle and general insurance), attributable to planned staff recruitment, increased medical utilization, inflation and planned vchicle acquisitions, and requested funding of the shortfall.

4. f)Pending Bills and Arbitration Awards (Ksh.578,588,204, one-off)- The Assembly acknowledged the Senate's earlier allocation of Ksh.55,000,000 in FY 2025/26, against which it had settled Ksh.106,800,000 of liabilities, but reported that its audited pending bills of Ksh.685,388,204 as at 30th June 2025 had reduced to an outstanding balance of Ksh.578,588,204, and requested a one-off allocation to clear this balance, noting that the

requirement to treat pending bills as a first charge perpetuated a cycle of accumulation.

• g) Furniture and Fittings for New Chambers (Ksh.220,000,000, one-off)- The Assembly reported that its new Chambers and Office Complex, under construction and expected to be ready by the third quarter of FY 2026/27, would require furnishing of the Chamber, committee rooms, offices, boardrooms and public spaces, and requested a one-off allocation to furnish and equip the facility.
• h) ICT Infrastructure for New Chambers (Ksh.60,000,000, one-off)- The Assembly rcquested a one-off allocation to install plenary conferencing and voting systems, biometric access control, network and server infrastructure, security surveillance, structured cabling and wireless connectivity for the new complex, to support digital transformation and avoid future retrofitting costs.
• i) Legal Costs (Ksh.29,958,279, one-off)- The Assembly reported outstanding legal obligations from litigation, arbitration and advisory services arising in the course of safeguarding institutional interests, and requested a one-off allocationtosettlethesecostsandavoidfurther accrualofinterest and penalties.

4. j)Motor Vehicles (Ksh.60,000,000, one-off)- The Assembly thanked the Senatefor the earlier Ksh.40,00o,000 allocation under the County Allocation of Revenue Act, 2025, but reported continuing fleet inadequacies given its 60 wards across twelve constituencies and fourteen sub-counties, and rcquestcd a further allocation for additional vehicles and replacement of aging units.

• k) Policy Recommendations to the Senate- The Assembly recommended: (i) adoption of a "protected baseline" framework for county assembly allocations, similar to that applied in revenue sharing among county governments, to ensure stability and predictability; (ii) review of Regulation 25(1)(f) of the PFM (County Governments) Regulations, 2015, which caps emoluments, as it may not reflect operational realities; and (i) review of the CRA's 70:30 O&M framework, given that statutory obligations such as ward

• officc operations and insurance already consume a large share of the 30% allocation, with actual market-based costing recommended.
• 31.In total, the assembly requested additional funding of Ksh.1,160,062,684, comprising Ksh.211,516,201 for recurrent ceiling enhancement and Ksh.948,546,483 for 0ne-off interventions.

2.6.5County Assembly of Kitui

32. The Kitui County Assembly proposed a comprehensive digitization programme aimed at making the Assembly fully digital, covering the following components;

• a) Reliable Internet Connectivity (Ksh.800,000)- For installation of high-speed andstable internet across all Assembly offices and chambers.
• b) Modern ICT Equipment (Ksh.13,970,000)- Comprising touch screen monitors for the Speaker's podium and Clerks-at-the-table (2 pcs at Ksh.270,000), HP laptops with graphics cards for livestreaming (2 pcs at Ksh.400,000), iPads for Members (65 pcs at Ksh.13,000,000), and smart scrccns for the Speaker's gallery, visitors' gallery and Press gallery (3 pcs at Ksh.300,000).
• c) Powcr Backup Systems (Ksh.250,000)- For procurement of an Uninterrupted Power Supply (UPS).
• d) Camera Matrix (Ksh.1,500,000)- To support the Assembly's video systems.
• c) AI Transcription Software Subscriptions (Ksh.1,000,000)- To facilitate automated transcription services.

7. Audio Segmentation Sofitware (Ksh.1,000,000)- To support processing and management of audio recordings.

• g) Video Cameras (Ksh.2,000,000)- Procurement of 2 Sony HD-4K cameras at Ksh.1,000,000 each.
• h) County Assembly Broadcasting Unit Set-up (Ksh.15,000,000)- Covering audio systems, video systems, control and management, transmission and streaming, recording and archiving, display, and information systems.
• i) Delegate Unit with Members' Login and Voting Component (Ksh.10,000,000)- To facilitate electronic member identification and voting during sittings.

11. j) New Cameras for Chamber Screens (Ksh.4,500,000)- Procurement of 3 cameras at Ksh.1,500,000 each.

• k) External Wireless Microphones (Ksh.600,000)- Procurement of 4 sets of Sennheiscr wireless microphones for video cameras at Ksh.150,000 each.

2. 1)AVMATRIX Video Mixer (Ksh.280,000)- A portable 6-channel streaming mixer for multiview at Ksh.140,000 per unit (2 units).

• m) Live Strcaming Software (Ksh.100,000)- Procurement of Vmx 4K live strcaming software.
• n) Chamber Audio/Video Cabling (Ksh.500,000)- For HDMI/SDI/VGA/RCA cabling within the chamber.
• o) Digital Systems and Platforms (Ksh.3,500,000)- Comprising a Document Managcment System for creating, storing, tracking and accessing official documents; an E-Assembly Software for digital filing of motions, bills, debates, voting and Hansard reporting; communication tools such as email, messaging platforms and virtual meeting applications (e.g., Zoom, Microsoft Teams); and a Public Portal for publishing legislation, reports, committee schedules and allowingpublicfeedback.
• p) Cybersecurity and Data Protection (Ksh.1,000,000)- Covering firewalls and antivirus systems to protect digital systems from cyber threats, data backup and recovery plans to ensure safety of information in case of system failure, and acccss control measures to ensure only authorized users can access sensitive documents and systems.

33. In total, the assembly requested for additional funding of Ksh. 56,000,000

2.6.6 County Assembly of Kisumu

34. The County Asscmbly of Kisumu appeared before the Committee and requested additional funding amounting to Kshs.445,566,838 for the Financial Year 2026/2027 to facilitate effective execution of its constitutional, legislative, oversight, and representative mandates, arising from expenditure pressures not adequatcly accommodated within the proposed ceiling allocation of Kshs.799,261,872.

• a) Personnel Emoluments and Statutory Salary Adjustments- The additional allocation of Kshs.65,390,938 is required to cater for annual salary increments, implementation of SRC salary reviews, adjustment of Members' mileage allowances, settlement of salary arrears, and recruitment of critical staff to address understaffing concerns raised by oversight agencies including

• the Office of the Auditor-General, the Ethics and Anti-Corruption Commission, and the Salaries and Remuneration Commission.
• b)Medical Insurance Premium-Tocoverincreased medicalinsurance prcmiums driven by inflation in the insurance market and the onboarding of additional staff members onto the medical scheme, the assembly requested an additional provision of Kshs.14,000,000.
• c) Public Participation and Civic Education- The assembly intends to undertake public participation on ten pending Bills across all wards and special interest groups within Kisumu County, in fulfilment of the constitutional requirement under Articles 10,118,and 196 of the Constitution,at a cost of Kshs.37,600,000.
• d) Contractual Price Variations- The construction project had experienced cost escalations arising from design modifications to accommodate staff offices, inflationary increases in construction input costs during the extended implementation period, and additional electrical infrastructure requirements including a three-phase power installation. An additional Kshs.104,000,000 is required to meet these variations.
• e) Furnishing and Equipping the Ultra-Modern Assembly Complex- In the previous financial year the assembly had requested Kshs.337,425,900, out of of Kshs.137,425,900 required to fully operationalize the facility.
• f) Utilities, Contracted Services, Repairs, Maintenance and CCTV InstallationThe operationalization of the new Assembly offices would significantly increase expenditure on security, cleaning services, lift maintenance, standby generators, and repairs, and the new premises required installation of an integrated CCTV surveillance system. A total of Kshs.42,000,000 is required to meet these obligations.
• g) Acquisition of Motor Vehicles- The assembly currently relies on only two 4x4 double cab vehicles are required to strengthen committee oversight, site visits, and monitoring activities, at a cost of Kshs.45,150,000.

35. In total, the assembly requested for additional funding of Kshs.445,566,838

2.6.7CountyAssembly of Laikipia

36. The County Assembly of Laikipia submitted the following;

• a) That their budget ceilings over successive financial years had not corrcsponded with actual expenditure obligations and prevailing cost movements,having fluctuated fromKsh 467,084,750in FY 2022/2023, to Ksh.545,809,048.69 in FY 2023/2024, down to Ksh.477,594,112 in FY 2024/2025 and Ksh.511,501,082 in FY 2025/2026, creating a structural financinggapthat threatenscontinuity of operations.
• b) Additional direct costs not reflected in current ceiling computation (Ksh.63,147,532.40 for FY 2026/27, Ksh.58,814,772.40 in subsequent years)- The Assembly submitted that several unavoidable obligations arising from lawful policy and administrative decisions had not been factored into the ceiling, comprising basic pay adjustments, mileage review for Members, salary market adjustment, costs of new MCAs, staff annual increments and increment arrcars, and previously awarded but subsequently omitted costs for security personnel wages, general repairs and maintenance, and utilities.
• c) Additional Members whose costs have not been factored into ceiling determination- The Assembly reported that two additional Members admitted following changes in membership in March 2023 had not been incorporated into budget computations due to non-gazettement by the IEBC, resulting in a recurrent financing deficit.
• d) Chamber and Office Furniture (Ksh.20,000,000)- The Assembly submitted that the Chamber and office furniture, in place since the facility was opened and refurbishment, with a recent market survey estimating the cost at Ksh.20,000,000.
• e) Ward Offices refurbishment (Ksh.9,488,000)- that their 15 ward offices, constructed and equipped in FY 2019/2020, require substantial repairs, with an assessment by the Department of Public Works producing a bill of quantities of Ksh.9,488,000, which the current ceiling could not accommodate.

7. f)Increased Insurance Costs (Ksh.15,000,000)- that the growth in Assembly and ward staff numbers had significantly increased insurance costs, with

• medical insurance rising from Ksh.15,000,000 to Ksh.27,000,000 over the last five years, and requested additional provision to address the increase.
• g) One-Off allocation (Ksh.30,000,000)- they requested a one-off allocation for the acquisition of one official vehicle for the Speaker and two pool vehicles to support committee oversight, administrative operations and service delivery, citing inadequate current transport capacity.

37. In total, the assembly requested for additional funding of Ksh.137,635,532

2.6.8CountyAssembly of Garissa

38. The representatives from the County Assembly of Garissa appeared before the Committee and presented the following; 2. a)) E-Parliament System (Ksh.50,000,000)- The Assembly currently relies on manual, paper-based processes that are slow and error-prone; a modern EParliament System would digitize the legislative process, including document management, electronic voting, Hansard recording and committee enabling participation without constant travel, while improving transparency and public access to legislative information.

• b) Broadcasting Unit and Media Centre (Ksh.35,000,000)- Given Garissa's young population that relies heavily on radio, television and social media, the Assembly's current capacity to communicate its work is very limited; a modern broadcasting studio and media centre would enable livestreaming of plenary and committee sessions, production of civic education content, and direct engagementwith citizensinfar-flung areas

4. c)Procurement of Motor Vehicles (Ksh.100,000,000)- The current fleet, acquired at the start of devolution and now 13-15 years old, is unreliable and costly to maintain, affecting oversight and public participation activities; the Assembly seeks to procure four vehicles- two Toyota Land Cruiser Prado 76 for committee services, one Toyota Land Cruiser Prado Executive for the Spcakcr, one Toyota Hiace 14-seater van, and one Toyota RAV4 as an office pool vehicle.

• d) Asset Valuation, Tagging, Maintenance and Management System (Ksh.8,000,000)- To comply with national financial regulations and National Trcasury directives, the Assembly proposes a modern digital asset

management system to enable proper valuation, RFID tagging, tracking and maintenance of all Assembly assets, reducing losses and strengthening audit compliance.

• e)Integrated Security Management System (ISMS) (Ksh.100,000,000)Following a June 2026 benchmarking visit to the National Parliament, the Assembly secks to implement a scaled-down version of Parliament's security system, comprising a Central Command Centre, advanced CCTV, access control and perimeter protection to safeguard Members, staff and visitors; the system is to be rolled out over three financial years (Ksh.35M in FY 2026/27, Ksh.35M in FY 2027/28, and Ksh.30M in FY 2028/29).

39. In total, the assembly requested for additional funding of Ksh.228,000,000

2.6.9County Assembly of Migori

• 40.The representatives from the County Assembly of Migori presented the following;
• a) That they require Ksh.20,573,510 to address staff establishment and recruitment gaps arising from expanded mandates and facilities.
• b) The Assembly requested Ksh.51,000,000 for replacement of motor vehicles due to disposal and deterioration ofthe existingfleet.
• c)Ksh.1,655,322.87 to cater for motor vehicle repairs and maintenance resulting from frequent mechanical breakdowns.
• d)Ksh.30,000,000 for furnishing newly constructed committee rooms to facilitate their operationalization.
• e) Ksh.40,000,000 for furnishing ward offices to support decentralized service delivery.
• f)Ksh.10,000,000 for furniture and fittings for the County Assembly headquarters.
• g) Ksh.40,000,000 for ICT and Audio- Visual Systems for committee rooms, including conferencing, Hansard and related facilities.
• h) Ksh.30,000,000 for procurement of gymnasium equipment to enhance staff welfare and productivity.
• i) Ksh.1,132,800 for installation of CCTV and access control systems to improve security at Assembly facilities.

• j)Ksh.1,950,500 for improvement of internet connectivity and bandwidth
• k) Ksh.40,000,000 for acquisition of a modern Hansard system to improve recording and transcription of proceedings.
• Ksh.8,000,000 for establishment of an E-Parliament System and Electronic Document Management System (EDMS).
• m) Ksh.8,650,000 for establishment of a Broadcasting Unit and Media Centre to enhance public access to Assembly proceedings.
• n) Ksh.6,00o,000 for strengthening Library and Information Services to support legislative research and information management.
• o)Ksh.3,500,000 for acquisition of a standby generator to ensure continuity of operations during power outages.
• p) Ksh.3,000,000 for utility connections, including water and electricity servicesfornewfacilities.
• q) Ksh.14,000,000 for security services to safeguard Assembly facilities, Members, staff and visitors.
• r) Ksh.1,000,000 for cleaning services to maintain health and safety standardswithinAssemblypremises.
• Ksh.10,134,800 for asset valuation and tagging to enhance accountability and compliance with public finance regulations.
• t)Ksh.16,000,000 for processing land titles for ward offices to regularize ownership and secure Assembly assets.
• u) Ksh.18,300,000 for installation of modern audio-visual systems in Assembly facilities
• v) Ksh.600,000 for cloud storage services to enhance data backup, security and records management.
• w) Ksh.73,123,720.65 to settle outstanding legal fees and court-awarded obligations.
• x) Ksh.8,932,456.23 for furnishing and operationalization of the Assembly cafeteria and kitchen facility.
• y) Ksh.368,000,000 to operationalize the Staff Car Loan and Mortgage Scheme for eligible staff members, noting that the scheme had not been adequately provided for in the recurrent expenditure ceilings.

41. In view of the above needs, the Assembly submitted that they face a funding gap of approximately Ksh.794,537,287, comprising Ksh.426,537,287 for operational and capital requirements and Ksh.368,000,000 for the Staff Car Loan and Mortgage Scheme, and requested Senate intervention to address the identified gaps.

2.6.10CountyAssembly ofTaita/Taveta

• 42.The Taita Taveta County Assembly appeared before the Committee and Ksh.233,685,230 above the approved cap of Ksh.689,647,079. The Assembly noted that without this adjustment, statutory personnel costs would consume 57% of its cntire recurrent budget, severely disabling its oversight and public participation functions. Their specific items included:
• a) That the approved recurrent expenditure ceiling of Ksh.689,647,079 for FY 2026/27isinsufficienttoenablethemeffectivelydischargetheir constitutional mandate of legislation, oversight, representation and public participation. Consequently, the Assembly requested an enhancement of its recurrent expenditure ceiling by Ksh.233,685,230.
• b) The Assembly stated that Taita Taveta County covers approximately 17,000 square kilometres with twenty wards spread across four sub-counties. They noted that the vast geographical coverage, dispersed population, border status and challenging terrain had significantly increased operational costs associated with oversight, committee work and public participation.
• c)The Assembly requested Ksh.53,663,364 to cater for salary adjustments for Members and staff arising from implementation of SRC-approved remuneration structures, salary increments and related statutory deductions and employer contributions.It noted that failure toprovide the additional funding would result in a significant proportion of its recurrent budget being absorbed bypersonnel emoluments.
• d) The Assembly further requested Ksh.8,736,000 to facilitate the increase of Members' Daily Subsistence Allowance (DSA) from Ksh.14,000 to Ksh.16,800 and support oversight, committee activities and public participation programmes across the county.

• e) Thc Assembly sought Ksh.21,285,866 for replacement of the Speaker's official vehicle. It explained that the current vehicle, acquired in 2015, had exceeded its economic lifespan, was experiencing frequent mechanical breakdowns and had become costly to maintain due to the county's rugged terrain and extensivetravel requirements.

2. f)The Assembly requested Ksh.80,000,000 for furniture and fittings for the new County Assembly Chamber, which was under construction and expected to be completed during FY 2026/27. The funds were intended for procurement of Members' desks, ergonomic seating, furniture for the Spcaker's dais and Clerk's table, public gallery fittings, committee room furniturc, chamber carpeting, office furniture, a golden mace safe and a backup generator.

• g) The Assembly sought Ksh.50,000,000 for installation of Hansard, telcconferencing and smart chamber systems to transform the new chamber into a modern digital legislature. The proposed investment included Hansard recording and transcription systems, virtual meeting facilities, audio-visual infrastructure, biometric attendance systems, CCTV surveillance, electronic documcntmanagement and electronicvotingsystems.
• h) The Asscmbly further requested Ksh.20,000,000 for the implementation of the Bunge Mashinani and Public Participation Programme across all twenty sittings, public participation forums, civic education, stakeholder consultations, legislative awareness campaigns and collection of public views on Bills and policies.

5. i)The Asscmbly submitted that the requested enhancement was driven by statutory and unavoidable obligations rather than discretionary expenditure. s oversight, accountability, transparency and public participation while cnhancing scrvice delivery to the residents of Taita Taveta County. 43. In total, the Assembly requested additional funding of Ksh.233,685,230 above the approved recurrent expenditure ceiling of Ksh.689,647,079 for FY 2026/27.

2.6.11 CountyAssemblyof Marsabit

44. The County Assembly of Marsabit submitted the following;

• a) CCTV System, Access Control and Internet Connection (Ksh.27,500,000)For installation in the new office extension block.
• b) Furnishing of the Speaker's and Honourable Members' Gallery and Equipping of the County Assembly Cafeteria (Ksh.70,000,000).

3. c)Standby Generator for Chamber Services (Ksh.40,000,000).

• d) Two (2) Hardtop 4x4 Land Cruiser Motor Vehicles (Ksh.30,000,000).

45. In total, the assembly requested for a one-off allocation of Ksh.167,500,000 in theFY2026/27.

CHAPTERTHREE

COMMITTEE'SRESOLUTIONSONTHECOUNTYASSEMBLY REQUESTSFORRECURRENTEXPENDITUREBUDGETCEILING ADJUSTMENTFORFY2026/27

• 46.The County Assemblies listed herein submitted requests for review of their respective recurrent expenditure budget ceiling. The Committee considered the requests and resolved that respective county assemblies' recurrent expenditure budget ceiling be adjusted to cater for the following expenditure items-

| 1) Kitui County Assembly | 1) Kitui County Assembly | 1) Kitui County Assembly | |----------------------------------------------|-----------------------------------------------------------------|----------------------------------------------| | No. | Item | Resolution | | 1 | Modern ICT Equipment | 13,970,000 | | 2 | PowerBackupSystems | 15,000,000 | | 3 | Cybersecurity and Data Protection | 1,000,000 | | Total 29,970,000 2)UasinGishu CountyAssembly | Total 29,970,000 2)UasinGishu CountyAssembly | Total 29,970,000 2)UasinGishu CountyAssembly | | No. | Item | Resolution | | 1 | Library Equipment | 10,000,000 | | 2 | solarpanelinstallations | 15,000,000 | | 3 | replacement of old computers, laptops, photocopiers | 7,000,000 | | 4 | Establishmcnt of broadcasting unit and media centre | | | 5 | E-Asscmbly Infrastructure and digital transformationinitiatives | 33,000,000 | | 6 | Purchase of motor vehicle for public participation | 20,000,000 | | Total 85,000,000 | Total 85,000,000 | Total 85,000,000 | | 3)Kisumu CountyAssembly | 3)Kisumu CountyAssembly | 3)Kisumu CountyAssembly | | No. | Item | Resolution | | 1 | Medical insurance premiumincreases | 14,000,000 | | 2 | Public participation and civic education obligations | 20,000,000 | | 3 | Furnishing and equipping Ultra Modern Assembly Complex | 41,000,000 | | 4 | Acquisitionofmotorvehiclesforcommittee operations | 25,000,000 | | Total | Total | 100,000,000 | | 4) Garissa CountyAssembly | 4) Garissa CountyAssembly | 4) Garissa CountyAssembly | | No. | Item | Resolution | | 1 | E-Parliament System | 30,000,000 |

| 2 | Broadcasting Unit &Media Centre | | |-----------------------------|---------------------------------------------------------------------------------------------------------|-----------------------------| | 3 | Procurement ofMotorVehicles | 30,000,000 | | 4 | Asset Valuation, Tagging, Maintenance & ManagcmentSystem | 8,000,000 | | | Integrated security management system (It has two components:access control system and surveillance) | 20,000,000 | | Total | Total | 88,000,000 | | 5)Nairobi CountyAssembly | 5)Nairobi CountyAssembly | 5)Nairobi CountyAssembly | | No. | Item | Resolution | | 1 | SRCReviewofthe4thRemuneration Benefit Cycle FY 2025//26 -2028/29 | 30,000,000 | | 2 | SRCReviewonMileageAllowance | 32,978,700 | | 3 | Review ofWard Operating Costsfor NCC Assembly | 20,000,000 | | 4 | AdministrationofMotorVehicle Reimbursementbenefitsformembers | 43,212,000 | | 5 | Medical cover for ward staff | 80,000,000 | | Total 206,190,700 | Total 206,190,700 | Total 206,190,700 | | No. | Item | Resolution | | 1 | Procurement ofutilityvehicles | 30,000,000 | | 2 | Procurementoffurnitureandequipment | 25,000,000 | | 3 | Refurbishment of dilapidated office spaces | 10,000,000 | | 4 | Disability AccessImprovements | 4,000,000 | | 5 | SecurityEnhancement | 10,000,000 | | 6 | Cafeteriarenovation and Equipment | 5,000,000 | | 7 | Parking Area renovation and rehabilitation | 8,000,000 | | Total | Total | 92,000,000 | | 7Marsabit CountyAssembly | 7Marsabit CountyAssembly | 7Marsabit CountyAssembly | | No. | Item | Resolution | | 1 | Furnishing of Speaker's & Honourable members gallery and cquipping of Marsabit CountyAssembly Cafeteria | 17,000,000 | | 2 | Stand-bygeneratorforchamberservices | 20,000,000 | | 3 | Two (2) hardtop 4*4 Landcruiser Motor vehicle | 30,000,000 | | Total | Total | 67,000,000 | | 8)TaitaTavetaCountyAssembly | 8)TaitaTavetaCountyAssembly | 8)TaitaTavetaCountyAssembly | | No. | Item | Resolution |

| | IncreaseinMCADailySubsistence Allowance | 8,736,000 | |----------------------------|----------------------------------------------------------------|----------------------------| | 2 | Replacement of Speaker'sofficialvehicle | 21,285,866 | | Total | Total | 30,021,866 | | 9)Laikipia CountyAssembly | 9)Laikipia CountyAssembly | 9)Laikipia CountyAssembly | | No. | Item | Resolution | | | Chambcrandofficefurniturereplacement | 20,000,000 | | 2 | Ward Officesrefurbishment | 9,488,000 | | 3 | Increased insurance costs | 15,000,000 | | | One-off allocation for Speaker vehicle and 4twopoolvehicles | 30,000,000 | | Total | Total | 74,488,000 | | 10)Kakamega CountyAssembly | 10)Kakamega CountyAssembly | 10)Kakamega CountyAssembly | | No. | Item | Resolution | | 1 | Funding Implications of the SRC-Reviewed RemunerationStructure | 13,391,916 | | 2 | Ward Office Operations | 27,000,000 | | 3 | Insurance Funding Shortfall | 17,456,293 | | 4 | Legal Costs (One off) | 29,958,279 | | 5 | MotorVehicles(One off) | 40,000,000 | | Total | Total | 127,806,488 | | 11)Migori CountyAssembly | 11)Migori CountyAssembly | 11)Migori CountyAssembly | | No. | Itcm | Resolution | | 1 | StaffEstablishmentandRecruitments | 20,573,510 | | 2 | MotorVchicleReplacement | 30,000,000 | | 3 | Furniture-Ward Offices | 10,000,000 | | 4 | CommitteeRooms-ICT andAVSystems | 10,000,000 | | 5 | Hansard System | 10,000,000 | | 6 | Stand-By Generator | 3,500,000 | | 7 | SecurityServices | 14,000,000 | | 8 | Legal fees bills | 20,000,000 | | Total | Total | 118,073,510 |

CHAPTERFOUR

COMMITTEEOBSERVATIONSANDRECOMMENDATIONS

Observations

• 47.Following deliberations with various stakeholders and consideration of the Bill, the Committeemadethefollowingobservations-
• a) The sharing of the revenue among the county governments for FY 2026/27 ofKsh.428.0 billion is based on the Fourth Basis.The application of the Fourth Basis shows that, Ksh.387.425 billion will be shared as previously received by counties, Ksh.4.46 billion is shared equally among Twelve (12) identified counties and Ksh.36.115 billion is shared among all the counties through an allocation ratio derived from Population Index weighted at 45%, Poverty Index weighted at 12%, Geographical Size Indexweighted at 8 %,and BasicShare indexweighted at 35 % and
• b) The CRA indicated that in developing the recurrent expenditure ceilings recommendations, Circulars and gazette notices from SRC issued from time to time, various Court determinations,IEBC Gazette notices on election outcomes, Senate and other stakeholders' feedback were taken into account. In line with this, analysis revealed that county assemblies with high representation (Number of wards and number of MCAs) had the highest expenditure ceilings, with some going beyond a billion shillings.

Recommendations

• 48.Having considered the Bill and stakeholders' submissions, the Committee recommends that the Senate approves the Bill with amendments on the schedules as follows-
• a)The First Schedule to the Bill to allocate KSh.428 billion among the counties; and
• b) The Second Schedule to the Bill to reflect adjusted recurrent expenditure ceilings for the county assemblies.

Appendices

1. Proposed Committee Stage Amendments 2. 2.Minutes of the Committee 3. 3.Submissions from Stakeholders 4. 4.Public Advert