Understanding budget: Key financial allocations for FY 2025/26

The 2025/26 financial year budget allocates Sh2.835 trillion in shareable revenue between the national and county governments.

Of this, the national government will receive Sh2.332 trillion, while county governments will share Sh415 billion—up from Sh387.4 billion the previous year.

An additional Sh9.6 billion has been earmarked for the Equalisation Fund to boost services in marginalised areas.

The projected ordinary revenue stands at Sh2.756 trillion, mainly from taxes, fees, and levies such as VAT, income tax, and customs duties.

This budget excludes grants and loans, focusing purely on domestic fiscal planning. The revenue is crucial in funding infrastructure, health, education, and economic growth.

It highlights the national goal of balancing equitable resource sharing while maintaining fiscal responsibility.

As counties prepare their budgets, emphasis remains on improving local service delivery and closing regional development gaps.