Introduced under the 2010 Constitution, the fund was designed to reduce disparities in access to basic services such as water, roads, electricity, and healthcare, targeting the country’s most marginalised counties.
The fund, established under Article 204, was meant to run from 2010 to 2040, aiming to transform counties historically left behind by uneven development.
The fund, established under Article 204, was meant to run from 2010 to 2040, aiming to transform counties historically left behind by uneven development.
Counties such as Samburu, Turkana, Mandera, Baringo, West Pokot, Wajir, and Garissa were expected to benefit most. However, MPs now say progress has been slow and disappointing.
The law mandates that 0.5 per cent of national revenue be set aside annually for the fund, yet disbursements have been erratic.
The law mandates that 0.5 per cent of national revenue be set aside annually for the fund, yet disbursements have been erratic.
As of February 2026, the Equalisation Fund CEO, Guyo Boru, reported arrears of Ksh62.77 billion owed by the National Treasury.
Audits and reports from the Controller of Budget (CoB) highlight funding gaps and delayed projects, with only Ksh15.9 billion disbursed out of an expected Ksh62.7 billion by mid-2025.
Funding delays have been compounded by counties failing to submit project proposals. For example, Bomet, Bungoma, Kericho, Kirui, Lamu, and Narok missed deadlines for projects worth Ksh1.3 billion, forcing postponement or cancellation of development initiatives.
Funding delays have been compounded by counties failing to submit project proposals. For example, Bomet, Bungoma, Kericho, Kirui, Lamu, and Narok missed deadlines for projects worth Ksh1.3 billion, forcing postponement or cancellation of development initiatives.
Meanwhile, the fund’s scope has expanded from 14 marginalised counties to 34, raising concerns that resources may be spread too thinly.
MPs have expressed frustration at what they describe as inefficiency and political interference. Eldas MP Adan Keynan called the fund a “political tool” delivering little to the people it was meant to help.
MPs have expressed frustration at what they describe as inefficiency and political interference. Eldas MP Adan Keynan called the fund a “political tool” delivering little to the people it was meant to help.
Parliamentary committees are now preparing a special report with recommendations on whether to continue, reform, or terminate the fund.
Experts argue that scrapping the fund without a viable alternative could leave vulnerable regions further behind, while maintaining a mismanaged fund risks wasting billions.
Experts argue that scrapping the fund without a viable alternative could leave vulnerable regions further behind, while maintaining a mismanaged fund risks wasting billions.
Observers suggest that the solution lies in targeted reforms, including timely disbursement, stricter oversight, and better project planning at county level.
Transparency and accountability are seen as critical to restoring public confidence, ensuring that the Equalisation Fund fulfills its original mission of narrowing development gaps and uplifting Kenya’s historically disadvantaged communities.
Transparency and accountability are seen as critical to restoring public confidence, ensuring that the Equalisation Fund fulfills its original mission of narrowing development gaps and uplifting Kenya’s historically disadvantaged communities.
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