MCAs dealt blow as new Bill hands Governors bigger spending window

Governors are set to enjoy a significantly larger recurrent expenditure ceiling in the coming financial year if a new Bill before the Senate is passed.

However, the County Allocation of Revenue Bill, 2026, has dealt a blow to Members of County Assemblies (MCAs), whose spending limits have been reduced.

The proposed law, sponsored by Senate Finance and Budget Committee chairperson Senator Ali Roba, seeks to increase recurrent expenditure ceilings for county executives while reducing allocations available to county assemblies.

The Bill, which has already been introduced in the Senate for first reading, seeks to operationalise Section 107(2)(a) of the Public Finance Management Act by setting expenditure ceilings for county governments.

According to the Bill, county executives will be allowed to spend Sh25.25 billion on recurrent expenditure in the next financial year, up from Sh23.41 billion in the current financial year.

The adjustment translates to an additional Sh1.83 billion for governors and their administrations.

The recurrent expenditure allocation caters for salaries, allowances, insurance and gratuity for governors and their deputies.

Others are county executive committee members, county secretaries, chief officers, county attorneys, directors and other administrative staff.

It also covers operational expenses such as public participation forums, county budget and economic forums, audit committees and maintenance costs.

The proposed increase is expected to give governors greater flexibility in running county governments at a time when devolved units continue to push for more resources to support service delivery.

However, while county executives stand to benefit from larger spending limits, county assemblies are set to lose significantly under the new arrangement.

The Bill proposes to reduce the total recurrent expenditure ceiling for county assemblies from Sh39.93 billion in the current financial year to Sh39.19 billion, representing a decline of Sh744.35 million.

The allocations to county assemblies cater for salaries, allowances, mileage claims, insurance and gratuity for speakers and MCAs, salaries and benefits for assembly staff, operations of county assembly service boards and secretariats, public participation programmes and other administrative expenses.

The reduction is likely to trigger resistance from MCAs, many of whom have in recent years complained about shrinking operational budgets amid rising responsibilities.

A breakdown of the proposed ceilings shows that several county executives will enjoy notable increases in spending limits.

Nairobi county executive will receive the largest recurrent expenditure ceiling, rising from Sh775.75 million to Sh834.72 million.

Nakuru county's ceiling will increase from Sh622.62 million to Sh666.89 million, while Narok county's allocation will rise from Sh499.13 million to Sh531.63 million.

Kisumu is among the biggest beneficiaries, with its spending limit increasing from Sh522.10 million to Sh638.23 million.

Bungoma county's allocation will rise from Sh562.05 million to Sh601.42 million, while Kisii’s ceiling will increase from Sh569.35 million to Sh608.71 million.

Samburu county records one of the sharpest increases, with its recurrent expenditure ceiling rising from Sh400.55 million to Sh633.21 million.

For county assemblies, however, the trend is largely downward.

Nairobi County Assembly's recurrent expenditure ceiling will decline from Sh1.60 billion to Sh1.56 billion.

Nandi County Assembly's allocation will drop from Sh811.14 million to Sh797.26 million, while several other assemblies are expected to experience similar reductions.

The proposed cuts come despite sustained lobbying by county assemblies for additional resources.

Last week, six county assemblies — Nairobi, Kiambu, Kisumu, Kitui, Garissa and Uasin Gishu — appeared before the Senate Finance and Budget Committee seeking a review of their expenditure ceilings.

The assemblies argued that the current allocations are insufficient to effectively discharge their oversight, legislative and representation mandates.

However, Senator Roba signalled that the assemblies should not expect major adjustments, citing resource constraints arising from lower allocations to counties under the Division of Revenue Bill, 2026.