COB Sounds Alarm Over KSh 10 Billion Equalisation Fund Gap That Could Stall Development in Marginalised Areas

In recent parliamentary sessions, lawmakers have debated not only the funding shortfalls but also which counties should benefit from the Equalisation Fund, noting significant shifts in how marginalisation is defined and applied. Originally intended to assist Kenya’s 14 most marginalised counties, including Turkana, Mandera, Marsabit, Samburu, West Pokot, Wajir, Narok, Garissa, Kilifi, Kwale, Lamu, Taita Taveta, Tana River and Isiolo, the list was expanded under new policy frameworks to include 34 counties with marginalised sub-locations across the country.

Critics in the Senate have argued this broad expansion risks diluting resources and undermining the original constitutional intent of targeting the most disadvantaged, while proponents say a wider set of regions face significant service gaps that merit support.

Major beneficiaries under the contested framework include Turkana (approximately Sh1.86 billion), West Pokot (about Sh1.66 billion), Wajir (Sh1.18 billion), Mandera (Sh1.22 billion), Narok (Sh1.25 billion) and Samburu (Sh1.05 billion) for the 2025/26 financial year, among others earmarked for smaller allocations that support water, health and road services.

In some cases, pending Equalisation Fund transfers have left communities without potable water, reliable health facilities or accessible rural roads months after project approval. The issue has also sparked discussions about whether current eligibility criteria and administrative arrangements adequately reflect the needs of marginalised areas.

Earlier policies identified a limited number of counties as beneficiaries, but later reviews expanded the list of marginalised areas using more precise deprivation metrics to ensure that funding reaches smaller communities within counties. Civil society groups and county leaders have called for better accountability and transparency in the administration of the Fund.

There is also pressure on the national government to speed up releases, ensure that appropriate allocations are honoured within the financial year and resolve procedural bottlenecks that contribute to cash flow problems at regional and local levels. Experts say that because the Equalisation Fund is designed to uplift some of Kenya’s poorest regions, continued shortfalls risk entrenching inequalities and undermining confidence in devolution, a cornerstone of Kenya’s governance system.

The COB’s latest alert puts renewed focus on budget implementation and delivery of devolved resources. The Treasury is expected to respond with updated disbursement schedules, and Parliament may revisit funding mechanisms during the next Division of Revenue Bill negotiations. Stakeholders are also expected to push for structural reforms that ensure timelier release of funds, clearer accountability frameworks and more robust monitoring of project execution to ensure that the intent of the Equalisation Fund is realised on the ground.