Counties would be barred from projecting own-source revenue more than 15 per cent above their last reported and audited collections under a bill now before the Senate Finance and Budget Committee.
The Public Finance Management (Amendment) Bill, 2026 is sponsored by Kiambu Senator Karungo Thang’wa. It targets three provisions of the Public Finance Management Act: Section 107(2), Section 131 and Section 135, where it would insert a new subsection.
The case for the ceiling rests on collection shortfalls. Counties raised Sh96.08 billion in own-source revenue last financial year against a target of Sh106.08 billion, leaving a gap of roughly Sh10 billion.
The County Governments Budget Implementation Review Report for 2025-26 points to a wider pattern: 20 counties collected less than three-quarters of the revenue they had approved in their budgets.
Under the proposal, county assemblies reviewing budget estimates from county executives would have to confirm that projected own-source revenue sits within the 15 per cent limit. Where a county collects more than it projected, it would be required to take a supplementary budget back to its assembly.
The bill remains under consideration. It has not been passed, and the committee has not set out a timeline for its decision.
