CRA Concludes Consultations with National Assembly, Council of Governors and Non-State Actors on FY 2027/28 Vertical Revenue Sharing
The Commission on Revenue Allocation (CRA) concluded its consultations on the proposed sharing of nationally raised revenue between the National and County Governments for the Financial Year 2027/28 on 15th October 2026, following a series of engagements with the Senate, National Assembly, the Council of Governors (CoG) and non-state actors.
Following an earlier engagement with the Senate on 5th October, the Commission met with the National Assembly Committee on Budget and Appropriations on 13th October, the CoG Finance, Planning and Economic Affairs Committee on 14th October and non-state actors on 15th October 2026. The non-state actors included Bajeti Hub, the Institute of Economic Affairs, the Parliamentary Budget Office and the Institute of Certified Public Accountants of Kenya (ICPAK).
The consultations focused on the proposed revenue sharing allocations between the national and county governments against the backdrop of growing public debt, revenue collection shortfalls and increasing pressure on public expenditure. They also provided an opportunity for stakeholders to give their views on how the available resources can be shared equitably while ensuring that both levels of government are adequately funded to deliver services.
Engagement with the National Assembly
The Commission’s delegation was led by its Chairperson, CPA Mary Wanyonyi Chebukati, CBS, while the National Assembly Budget and Appropriations Committee (NABAC) was led by its Chairperson, Hon. Samuel Atandi, CBS, MP.
CPA Chebukati emphasised the importance of Parliament’s role in the revenue sharing process and the need to ensure that both levels of government receive adequate resources to perform their constitutional functions. She noted that the Recommendation had considered the prevailing economic conditions, revenue performance and the expenditure need of both levels of government.
The NABAC urged the Commission to ensure the final recommendations submitted to Parliament are practical, considering that the FY2027-2028 is likely to report lower than targeted revenue collections due to the August 2027 General Elections.
Engagement with the Council of Governors
On 14th October 2026, CRA engaged the CoG Finance, Planning and Economic Affairs Committee in discussions on the proposed revenue sharing allocations for FY 2027/28.
In the consultations, the CoG urged CRA to consider the financing needs of county governments holistically bearing in mind the 14 functions that county governments should perform as outlined in Fourth Schedule of the constitution and the fiscal challenges affecting the implementation of devolved functions.
The CoG further argued that the proposed county allocation for FY 2027/28 did not sufficiently provide for salary adjustments recommended by the Salaries and Remuneration Commission (SRC), Collective Bargaining Agreements (CBAs) for health workers and the financing of transferred and unbundled functions. They also cited the growing cost of healthcare services, including the absorption of Universal Health Coverage (UHC) staff.
Engagement with Non-State Actors
The final consultation, held on 15th October 2026, brought together representatives from Bajeti Hub, the Institute of Economic Affairs, the Parliamentary Budget Office and the Institute of Certified Public Accountants of Kenya (ICPAK).
The CRA delegation was led by Vice-Chairperson Koitamet Olekina, who led the discussions, providing an opportunity for the non-state actors to contribute their perspectives on the proposed revenue sharing framework, fiscal sustainability, accountability and the effective use of public resources.
CRA Proposes KSh 440.84 Billion for County Governments
Under the draft Recommendation, CRA proposes that county governments receive KSh 440.84 billion as their equitable share for FY 2027/28, an increase of KSh 12.84 billion, from the KSh 428 billion allocated in FY 2026/27 and KSh 2.798 trillion for the National Government based on projected shareable revenue of KSh 3.249 trillion. Further KSh 10.25 billion for the Equalisation Fund based on the FY 2022/23 audited and approved accounts of revenue amounting to Ksh. 2,050.1 billion.
Next Steps
The CRA is expected to finalise and submit its 16th Recommendation on vertical revenue sharing by the end of October 2026, in line with the revised national budget calendar that considers the August 2027 General Election. The stakeholders’ input will be considered in finalizing the recommendations.
The Recommendation will provide an important basis for deliberations on how national resources should be shared in FY 2027/28, amid competing expenditure priorities, fiscal constraints and the need to sustain effective service delivery across the country.
