County governments are set to receive the highest allocation in Kenya’s history after President William Ruto assented to the Division of Revenue Bill, 2026, on Monday paving the way for the implementation of the 2026/27 budget.
The law allocates KSh428 billion to counties, representing an increase of KSh13 billion from the KSh415 billion allocated in the current financial year.
The signing of the Bill marks a major milestone in the budget-making process and comes at a time when county governments have been pushing for more resources to support service delivery amid rising operational costs and growing demand for healthcare, roads, water and other devolved functions.
In a statement after assenting to the Bill, President Ruto said the allocation exceeds the constitutional minimum threshold and reflects the government’s commitment to strengthening devolution.
“Significantly, the equitable share allocated to county governments exceeds the constitutional minimum threshold of 15 per cent, reaffirming our commitment to strengthening devolution and enhancing service delivery across the country,” he said.
The legislation also provides KSh10.25 billion for the Equalisation Fund, which is meant to support development projects in historically marginalised areas.
The allocation represents an increase from the previous financial year and is expected to finance critical infrastructure and social services in underserved regions.
National Assembly Finance and National Planning Committee Chairperson Kimani Kuria welcomed the signing of the law, saying the additional KSh13 billion allocation demonstrates the government’s commitment to supporting county administrations and ensuring services reach wananchi at the grassroots.
The latest increase comes despite mounting pressure on the national budget, with the government facing growing expenditure demands, including debt servicing obligations and other commitments under the Consolidated Fund Services.
The revenue-sharing law is among the key pieces of legislation required for the implementation of the 2026/27 Budget and clears the way for the transfer of billions of shillings to the 47 county governments.
The allocation is likely to be welcomed by governors, many of whom have consistently argued that counties require more resources to effectively discharge devolved functions and meet the needs of a growing population.
With the Bill now signed into law, attention shifts to how the additional funds will be utilised and whether counties can translate the increased allocation into improved services for millions of Kenyans.