The Treasury did not send any cash to counties in July, kicking off the current financial year on a trend that could set it up against governors in fights for resources.
Latest details from the Exchequer show that in July, which is the first month of the 12 months in the 2025/26 fiscal year, no equitable share of revenues was released to counties, though they were expected to receive about Sh34.6 billion.
Article 202 of the Constitution requires that revenue raised nationally be shared equitably among national and county governments.
County governments are budgeted to receive Sh415 billion in the equitable share of revenues during the year that ends in June 2026.
“The equitable share allocation to county governments is Sh415 billion as per the County Allocation of Revenue Bill, 2025,” Treasury notes in the statement of actual revenues and net exchequer issues as at July 31, 2025.
Failure to send cash to counties was a relapse on Treasury’s side, just after closing the previous fiscal year with no debt to the regions after years of crossing financial years with arrears.
During the 2023/24 fiscal year, Treasury failed to send Sh30 billion to counties by the end of June 2024, which saw the budget carried forward to the 2024/25 year. Treasury, however, managed to send all of the budgeted equitable share of revenues to counties by the end of June 2025.
Other than the budgeted Sh415 billion equitable share during the current fiscal year, counties are also expecting to receive Sh93.5 billion in grants.
“The County Governments Additional Allocations Bill, 2025 provides for extra allocations to county governments in the financial year 2025/2026 amounting to Sh93,533,610,590 to be disbursed through the respective Ministries, Departments and Agencies,” Treasury stated.
Counties rely on the equitable share to pay salaries, fund development projects, and settle bills owed to contractors. But they have over the years been forced to endure delayed disbursement amid revenue shortfalls and mounting debt payments, mainly to China.
Among counties expecting to receive huge chunks from Treasury during the current fiscal year are Nairobi (Sh21.4 billion), Nakuru (Sh14.4 billion), Turkana (Sh13.9 billion), Kakamega (Sh13.7 billion), Kiambu (Sh13 billion), Kilifi (Sh12.8 billion), and Mandera (Sh12.3 billion).
At least 12 counties will be receiving over Sh10 billion each in equitable share from the national government.
This money is on top of the grants that counties receive to fund different projects and programmes, and own revenues generated from the fees and levies on different services.
