Kenya's Treasury has failed to release funds to counties in July, despite an expected Sh35 billion, marking a tough start to the 2025/26 financial year.
As of Aug 20, there was a public posting by Treasury or the Controller of Budget specifically confirming a July 2025 equitable-share disbursement; earlier in July, Treasury released Sh30.8B to close part of FY2023/24 arrears. Meanwhile, multiple outlets have flagged delays to counties around the financial year switch-over this year (and in prior months).
Kenya’s Division of Revenue and County Allocation processes determine the totals, but cash-flow timing often falters due to lower-than-expected revenue and pressure from debt payments. Civil society has raised concerns about declining county share ratios in recent DoRB drafts.
Senate and Parliament documents show Sh415B for FY2025/26. That translates to Sh34.6B per month, which is commonly rounded to Sh35B. This figure serves as the baseline that commentators refer to for “monthly expected” amounts.
Kenya’s PFM framework does not ensure equal monthly releases.
Salaries, health commodities, payments to county hospitals, and contractors rely on predictable cash flows. Ongoing gaps in July make counties pile up unpaid bills and delay payrolls or services.
Counties can’t borrow easily. Delays in receiving their equitable share force them to cut back on spending, postpone development projects, and put pressure on local suppliers. Pending bills had already caught national attention earlier this year.
When counties do not get cash on time, even after Parliament finalises totals, it undermines citizen trust in devolution.
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