President William Ruto has assented to the County Allocation of Revenue Bill, 2026, at State House, Nairobi.
The Head of State signed the bill at State House on June 29, 2026, thus unlocking Ksh428 billion for Kenya’s 47 counties for the 2026/2027 financial year.
“The Act allocates Ksh428 billion as an equitable share of nationally raised revenue to the 47 county governments. This represents 20.9 per cent of the most recently audited national revenue, exceeding the 15 per cent minimum required under the Constitution,” Ruto said in a statement.
“The Act distributes the equitable share among the 47 counties in accordance with the revenue-sharing formula approved under Article 217 of the Constitution.”
According to the president, the formula used to allocate the resources to the devolved units will ensure fair distribution.
“The formula provides a stable baseline allocation while ensuring a fair distribution based on equal share, population, poverty level, and geographical size,” he added.
“The enhanced allocation will strengthen devolution by equipping county governments with the resources they need to fulfil their constitutional mandate and deliver quality services in line with their budgets and development priorities.”
Passage of the Division of Revenue Act, 2026
The bill follows the earlier passage of the Division of Revenue Act, 2026, which set the overall national revenue split between the national government and county governments. Under that framework, counties receive Ksh428 billion from a total national revenue base of Ksh2.46 trillion, alongside allocations for the Equalisation Fund.
The county allocation represents an increase of Ksh13 billion compared to the previous financial year, which Parliament says will strengthen service delivery in devolved sectors such as health, agriculture, water services, roads and early childhood education.
