CRA Engages CoG and CECM Caucus on FY 2026/27 County Recurrent Expenditure Budget Ceilings

The Commission, led by Chairperson, CPA Mary Chebukati, today convened a stakeholder engagement meeting with officials from the Council of Governors (CoG) and the County Executive Committee Members’ (CECM) Finance Caucus to discuss the proposed County Recurrent Expenditure Budget Ceilings for the 2026/27 Financial Year.

The ceilings help counties plan their budgets responsibly by capping recurrent spending in line with the law, economic performance and national guidelines. CRA develops the ceilings in accordance with constitutional requirements, the Public Finance Management Act, the Salaries and Remuneration Commission guidelines, relevant court decisions and feedback from stakeholders.

During the meeting, the Commission presented the legal and policy basis underpinning the ceilings, including gazette notices, SRC circulars, statutory obligations and court determinations that outline CRA’s mandate in setting expenditure limits. CRA also explained the structured process used in developing the ceilings—from data collection and analysis to actuarial assessments, stakeholder engagements and public participation requirements.

Key elements of the ceilings framework shared during the discussion included:

• Updated mileage allowance structure for the Members of County Assemblies (MCAs) based on the latest SRC guidelines.
• Actuarial estimates for medical insurance, group life and Work Injury Benefits Act (WIBA) costs for both County Assemblies and County Executives.
• Public participation model parameters informed by county size, number of wards and operational needs.
• Committee limits, maintaining a maximum of 18 committees per County Assembly.
• Considerations for personal guides for public officers with disabilities, based on counties that submitted data.
• Staffing norms, including provisions for seven directors and adjustments for 14 chief officers.
• Parameters for Operations and Maintenance using the 70:30 rule.
• Submissions related to village administrators and councils, noting low data availability from the county governments. Only 7 out of 47 counties submitted the requested data.

Also highlighted were insights from courts affirming CRA’s role in setting expenditure ceilings and emerging factors such as SHIF, NSSF adjustments and new administrative structures influencing county wage bills.

The stakeholders raised issues, which CRA acknowledged and will be considered in refining the ceilings.