CRA calls on counties to provide complete data to support finalisation of the FY 2026/27 Recurrent Expenditure Budget Ceilings
The Commission has urged county governments and county assemblies to urgently submit complete and accurate data to support the finalisation of the draft County Recurrent Expenditure Budget Ceilings for the Financial Year 2026/27.
During a stakeholder consultation meeting with the County Assemblies Forum (CAF) and the Society of Clerks at the Table in Kenyan County Legislatures (SOCATT), the Commission noted that, despite earlier requests, only 7 out of 47 counties had provided the required information, and even then, some submissions were incomplete.
The meeting, held at the Commission’s offices on 19th November 2025, aimed to review the proposed ceilings ahead of their submission to the Senate. The Commission emphasised that the existing data gaps pose a major challenge and risk undermining its ability to prepare credible, consistent and evidence-based recommendations.
The Process of Developing the Recurrent Expenditure Budget Ceilings
CRA follows a structured, legally guided process to develop the County Recurrent Expenditure Budget Ceilings.
The process begins by establishing the legal and policy basis, including provisions in the Constitution, the Public Finance Management Act, relevant legislation, SRC circulars and court rulings that affect items in the ceilings.
The Commission then develops a technical framework for preparing the ceilings and requests the required data from all 47 counties, both County Assemblies and County Executives. Once received, the data is analysed and incorporated into the framework to generate the draft ceilings.
These draft ceilings then undergo review by the Commission’s Technical Committee, after which CRA conducts consultative engagements with key stakeholders, including county executives, county assemblies, the Senate, the Parliamentary Budget Office and other key actors. Feedback from these engagements is integrated into the ceilings.
The revised ceilings are then submitted to the Full Commission for approval. The Commission may approve the ceilings without amendments or propose amendments. Once approved, the ceilings are submitted to the Senate, which may either approve or amend the recommendations.
This process ensures that the ceilings are evidence-based, consultative and compliant with the legal and administrative requirements governing county budgeting
Consultative engagements with the counties
The Commission had requested all the 47 County Executives and County Assemblies to provide updated data on the following for consideration in the Ceilings:
- Personal guides for public officers living with disabilities that have been engaged by each county government. The Salaries and Remuneration Commission (SRC) through a circular of 2019 provides remuneration for such guides and the type of disabilities that are eligible for the guide, terms of engagement and the requirements for the public officers.
- Construction status of the non-core infrastructure projects. These include the Speakers’ residence, county assemblies’ chambers and Members of the County Assembly (MCA) offices. Many assemblies have requested for consideration allocations for furnishing, installation of ICT infrastructure, Hansard requirement and related security costs for the new Speaker’s residence, assembly chambers and MCA’s officers.
- Status of establishment of the office of the village administrator and council. The County Government Act, 2012 Sections 52 and 53 guide on the establishment of the two offices respectively.
The Commission reminded stakeholders that it must submit its recommendations to the Senate six months before the close of the financial year, as required by the Public Finance Management Act. For the FY 2026/27 ceilings, this deadline is 31st December 2025, leaving a limited window for analysis and consolidation.
In light of the tight timelines, CAF and SOCATT committed to work with all county assemblies and executives to ensure that the outstanding data is submitted within one week. This commitment aligns with the agreement reached during the stakeholder engagement held the previous day, 18th November 2025, with officials from the Council of Governors (CoG) and the County Executive Committee Members’ (CECM) Finance Caucus.
What Informs the Development of the 2023/24 County Recurrent Expenditure Budget Ceilings?
To prepare the 2023/24 Recurrent Expenditure Budget Ceilings, the Commission draws from several key sources of information and guidance.
- SRC Circulars
The Commission relies heavily on SRC circulars that guide remuneration and benefits for both County Assemblies and County Executives.
For the County Assemblies, this includes SRC guidance on:
- Salaries and benefits for MCAs and state officers
- Allowances (such as mileage, house rent, leave allowance)
- Salary reviews for assembly staff
- Insurance costs (medical, group life, and personal accident)
- Operations and maintenance (based on the 70:30 rule)
- Training allocations (kept at 10%)
For the County Executive, the Commission considers circulars on:
- Remuneration and benefits for state officers
- Audit committee allowances
- County Attorney’s remuneration
- Salaries for County Public Service Board members
- Insurance costs, operations and maintenance, training, and staffing norms
The ceilings also account for village administrators, seven directors and adjustments for chief officers; 14 in most counties and 10 in smaller counties such as Isiolo, Laikipia, Tharaka Nithi, Lamu, Samburu and Tana River.
- Court Determinations
Several court cases since 2014 have shaped how the Commission develops and operationalises the ceilings. Key rulings include:
- Petition 368 of 2014: Confirmed that CRA does have the mandate to set county recurrent expenditure ceilings. This later led to an amendment of Section 107 of the PFM Act.
- Petition 9 of 2018: Challenged SRC remuneration guidelines; the court quashed Gazette Notice No. 6518 of July 2017.
- Petition 1 of 2019 (Kisumu): Affirmed that the Commission’s ceilings circular should apply to all MCAs—both nominated and elected.
- Petition E003 of 2020 (Embu): Raised concerns about the Commission particularising budget lines. The matter was settled out of court after CRA clarified assembly budgeting roles in the 2022/23 circular.
- Division of Revenue Recommendations
The Commission also considers the proposed Division of Revenue for 2023/24 to ensure the ceilings align with the overall resource envelope available to counties.
- Stakeholder Feedback
Before finalising the ceilings, the Commission consults widely with key stakeholders including County Assemblies, County Executives, The Parliamentary Budget Office and The Senate. Feedback from these engagements is incorporated into the ceilings and further consultations held before the final recommendation is issued.
