President William Ruto has signed into law the County Allocation of Revenue Bill, 2026, paving the way for the disbursement of KSh 428 billion to Kenya’s 47 county governments for the new financial year.
The president assented to the Bill at State House, Nairobi, saying the allocation reinforces the government’s commitment to strengthening devolution and improving service delivery across the country.
The newly enacted law allocates KSh 428 billion as the equitable share of nationally raised revenue to counties. The amount represents 20.9% of the most recently audited national revenue, well above the constitutional minimum threshold of 15%.
“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,” Ruto said.
The funds will be shared among the 47 counties using the revenue-sharing formula approved under Article 217 of the Constitution.
According to the president, the formula guarantees a stable baseline allocation while ensuring a fair distribution of resources by taking into account factors such as equal share, population, poverty levels and geographical size.
The signing of the Act clears the way for county governments to access their equitable share of national revenue, enabling them to implement their budgets and accelerate development projects aimed at improving the livelihoods of wananchi.