Treasury Cabinet Secretary John Mbadi has officially announced a Ksh2.68 billion water and sanitation initiative supported by a German loan, benefiting 18 counties.
The funding originates from KfW, the German Development Bank, as part of the Kenya Water, Sanitation and Hygiene (K-WASH) Programme for the 2025/2026 fiscal year.
Mbadi confirmed these conditional allocations through a Gazette Notice dated May 22nd, in accordance with the County Governments Additional Allocations Act, 2025.
According to the notice: “IT IS notified for the general information of the public that pursuant to section 6 (2) (u) of the County Governments Additional Allocations (No. 2) Act, 2025, the conditional allocations financed by proceeds from KfW (German Development Bank) Loan for the Kenya Water, Sanitation and Hygiene (K-WASH) Program have been allocated to the county governments specified in Column A of the Schedule hereto in the amounts specified in Column B and Column C, for Financial Year 2025/2026.”
Among the Ksh2.6 billion allocation, Kitui County will receive the largest portion at Ksh248.8 million, attributed to its predominantly semi-arid characteristics.
Counties including Baringo, Garissa, Mandera, Migori, Murang’a, Nandi, Narok, Samburu, Tana River, Tharaka-Nithi, Vihiga and West Pokot will each receive Ksh143.1 million.
Additional beneficiaries are Bomet with Ksh148 million, Kericho at Ksh143.1 million, and Kirinyaga receiving Ksh144.3 million.
Kwale will receive Ksh143.4 million, while Makueni has been allocated Ksh144 million.
More than 80 percent of Kenya’s total land area is classified as Arid and Semi-Arid Lands, or ASALs, primarily located in the northern, eastern, and coastal regions, leaving just 20 percent of the land suitable for cultivation.
These regions accommodate over one-third of Kenya’s population, support more than 60 percent of the nation’s livestock, and remain particularly vulnerable to climate variations caused by highly unpredictable annual rainfall patterns.
The loan is being disbursed as the country is preparing to present its budget, reflecting a 1.92 percent increase from the 2025-26 budget.
Notably, the Kenya Revenue Authority (KRA) has collected Ksh2.9 billion, creating a budget deficit of Ksh1.9 trillion that will require borrowing, adding to the existing financial pressures facing the nation.