The Budget and Appropriations Committee has adopted its Report on the Equalisation Fund Appropriation Bill, 2026, paving the way for consideration of the proposed allocation by the National Assembly.
The Committee Vice Chairperson and Endebess MP Robert Pukose noted that the proposed allocation is consistent with the amount provided for the Equalisation Fund under the Division of Revenue Act, 2026.
The Sh10.25 billion represents the mandatory 0.5 per cent of the audited and approved national revenue for the 2022/23 financial year, which was used to determine revenue sharing for the 2026/27 financial year.
Of the allocation, Sh9.9 billion will finance development programmes in identified marginalized areas, while Sh307.52 million will cater for Secretariat expenses, in accordance with regulations limiting administrative expenditure to three per cent of the Fund’s annual allocation.
The development funds will be distributed according to the allocation factor under the Second Marginalisation Policy, with priority given to areas facing significant deficits in basic services.
Turkana is set to receive an allocation of Sh1.13 billion, with West Pokot at Sh1.01 billion. Other major beneficiaries include Narok, Mandera, Wajir, Samburu, Garissa, Baringo and Kilifi.
Committee Members observed that the allocation pattern is largely driven by poverty levels, infrastructure deficits and limited access to basic services rather than population size or economic activity.
However, the Committee raised concerns over the fragmentation of the Fund across 1,424 marginalized areas, noting that very small allocations could result in micro-projects whose impact may be difficult to sustain and monitor.
Members further called for stronger accountability to ensure the money delivers tangible improvements in basic services in marginalized areas.
The Committee raised concerns regarding delays in disbursement of appropriated funds, which have affected implementation of projects approved under the Second Marginalisation Policy.
The National Assembly is expected to consider and debate the Bill If approved Sh10.25 billion will be allocated to the Equalisation Fund for the 2026/27 financial year.
By Joseph Ng’ang’a
