𝐒𝐄𝐍𝐀𝐓𝐄 𝐂𝐎𝐌𝐌𝐈𝐓𝐓𝐄𝐄 𝐃𝐄𝐌𝐀𝐍𝐃𝐒 𝐀𝐂𝐂𝐎𝐔𝐍𝐓𝐀𝐁𝐈𝐋𝐈𝐓𝐘 𝐎𝐕𝐄𝐑 𝐄𝐐𝐔𝐀𝐋𝐈𝐒𝐀𝐓𝐈𝐎𝐍 𝐅𝐔𝐍𝐃 𝐀𝐑𝐑𝐄𝐀𝐑𝐒

𝐏𝐚𝐫𝐥𝐢𝐚𝐦𝐞𝐧𝐭𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠𝐬

𝐓𝐮𝐞𝐬𝐝𝐚𝐲, 𝟏𝟕𝐭𝐡𝐌𝐚𝐫𝐜𝐡𝟐𝟎𝟐𝟔

The Senate Standing Committee on Finance and Budget has expressed deep frustration over the persistent failure by the National Treasury to disburse funds meant for the Equalisation Fund. 

As of December 31, 2025, the Fund is owed a staggering KSh 62.67 billion in accumulated arrears, a deficit that directly jeopardizes basic services for Kenyans in marginalized regions.

Despite a prior commitment to pay KSh 9.98 billion annually through 2028, the Second Quarter Report for the 2025/2026 Financial Year reveals the Treasury has not honoured this plan, citing fiscal space constraints.

While considering the Report at Parliament Buildings earlier today, the Members of the Committee, led by Mandera Senator Ali Roba, decried a blatant lack of the National Treasury’s goodwill to fund the Fund. 

Senators pointed out that while other statutory funds, such as the Housing and Fuel Levy Funds, have thrived, the Equalisation Fund has been sidelined, raising serious questions about constitutional compliance.

“If the Government has no plans of implementing the Equalisation Fund to the letter and spirit of the Constitution in line with Article 204 of the Constitution, then we will conclude that there is no goodwill to implement this Fund. This matter has to be escalated to levels that are supposed to be asking the right questions,” Senator (Cpt.) Ali Roba submitted.

Committee Vice Chairperson, Senator Tabitha Mutinda said it was important to balance between administrative expenses and development in the county.

Kakamega Senator Boni Khalwale criticized the current second marginalisation policy for fragmenting resources, arguing that micro-allocations fail to achieve any meaningful development impact.

“When you allocate Machakos County just KShs 9 million, what can that money do to change the lives of Kenyans who are in dire need of water across the county?” Senator Khalwale posed.

On his part, Migori Senator Eddy Oketch underscored the systemic failure of the Treasury to provide a comprehensive response, highlighting a total breakdown in the financial support structure promised to the most vulnerable areas.

With the Fund’s 20-year lifespan set to lapse in just four years, the Finance Committee resolved to summon both the Cabinet Secretary for the National Treasury and the Equalisation Fund CEO to explain these failures and provide a roadmap for full constitutional compliance.