CRA Submits Revenue Sharing Recommendations for FY 2026/2027

The Commission submitted to Parliament its Recommendations on the Basis for Equitable Sharing of Revenue between the National and County Governments for the Financial Year 2026/2027, in fulfilment of its constitutional mandate.

The recommendations are informed by an assessment of Kenya’s macroeconomic outlook, revenue performance and the principles of equitable sharing set out in the Constitution. They seek to ensure that nationally raised revenue is shared in a manner that supports effective service delivery, fiscal sustainability and balanced development across the country.

Based on a projected total revenue of Ksh. 2,982.3 billion for FY 2026/2027, the Commission recommends that:

• 2,513.76 billion be allocated to the National Government;
• 458.94 billion be allocated to County Governments as equitable share; and
• 9.60 billion be allocated to the Equalisation Fund, representing 0.5% of the most recent audited and approved revenues for FY 2021/22 (Ksh. 1,920.4 billion), in line with Article 204 of the Constitution.

In making these recommendations, the Commission considered the respective responsibilities of each level of government, the need to protect essential national functions and the importance of strengthening counties’ capacity to deliver services closer to the people. The proposed allocation also considers fiscal pressures, debt obligations and the broader objective of maintaining macroeconomic stability.

The Equalisation Fund allocation is aimed at supporting marginalised areas to improve access to basic services, including water, roads, health facilities and electricity, thereby reducing disparities and promoting inclusive development.

CRA’s recommendations are intended to provide a stable and predictable framework for revenue sharing, support planning and budgeting processes across government and reinforce the constitutional principle that public resources should be shared fairly and used efficiently for the benefit of all Kenyans.

Read the full recommendations here: CRA-Recommendation on The Basis for Equitable Sharing of Revenue FY-2026-27.pdf