
CRA engages stakeholders on County Budget Ceilings for FY 2025/2026 amid fiscal pressures
On December 5, 2024, the Commission on Revenue Allocation (CRA) convened a consultative meeting to discuss the County Recurrent Expenditure Budget Ceilings for FY 2025/2026. Led by CRA Vice Chairperson Koitamet Ole Kina, the session brought together the County Assemblies Forum (CAF), the Society of Clerks at the Table (SOCATT), and internal stakeholders to align on strategies for effective fiscal management in the context of economic challenges.
Navigating a contracting fiscal space
CRA emphasized the importance of collaboration to address the fiscal realities facing counties. Our Vice Chairperson Ole Kina acknowledged that the 2025/26 budget ceilings are set within a challenging fiscal space shaped by economic conditions, such as reduced inflation and increased taxes. These ceilings are meant to balance fiscal discipline with the need to empower counties to fulfill their mandates

CRA highlighted that the ceilings were informed by data-driven processes, including emerging issues such as Kenya Gazette notices on remuneration and recent legal determinations. This proactive approach ensures the ceilings remain relevant and responsive to county needs.
Need for decisive action by the county governments
Commissioner Khadija Juma, who chairs the Commission’s Public Finance Management Committee, and Ag. CEO Roble Nuno urged counties to take decisive action to boost their Own-Source Revenue (OSR) for greater financial stability. They highlighted innovative examples from counties that have successfully adopted robust revenue-enhancing policies, showcasing the potential for transformative change. They emphasized the potential of CRA’s Model Tariff and Pricing Policy for County Governments to guide counties in setting fair and sustainable fees and charges, aligning revenue collection with service provision costs.


Similarly, Commissioner Fatuma Gedi encouraged county representatives to leverage media and public platforms to build awareness and support for their revenue initiatives, emphasizing the importance of collaborative advocacy in addressing shared challenges.

Operational challenges and pathways to solutions
The stakeholders were concerned with rising operational difficulties due to new statutory deductions, overstaffing, and the need for continuous training for newly elected officials.


CRA responded by reiterating its dedication to inclusivity and its openness to refine budget ceilings in light of emerging issues. Commissioner Dr. Isabel Waiyaki noted the need to revisit Public Finance Management Regulations to address structural barriers that limit counties’ financial flexibility.
Strategic recommendations for the counties
The CRA proposed actionable recommendations to strengthen county fiscal management, including:
- Adhering to the 70:30 rule for operations and maintenance costs.
- Allocating resources for public participation and capacity building.
- Hiring in-house legal counsel to optimize costs.
CRA also called on counties to maintain clear communication with the Commission, enabling more effective advocacy on critical fiscal matters at the Senate.
A unified vision for devolution
The consultative meeting underscored CRA’s role as a trusted partner in advancing devolution goals. Through continuous engagement and dialogue, the Commission continues to empower counties to overcome fiscal challenges and deliver essential services to their citizens.
Looking ahead, CRA remains committed to refining its processes and ensuring budget ceilings are not only compliant with legal frameworks but also aligned with the practical realities of county governance and devolution. Together, these efforts pave the way for stronger counties and a more resilient devolved system of government.