Ruto Signs Revenue Law, Unlocks Ksh428 Billion for Counties in 2026/27 Budget
President William Ruto has signed the County Allocation of Revenue Bill, 2026 into law, officially allowing Kenya’s 47 county governments to receive Ksh428 billion as their equitable share of nationally collected revenue.
The signing took place at State House in Nairobi and marks an important milestone in the implementation of the 2026/2027 financial year budget while reinforcing the country’s devolved system of government.
The new legislation gives county governments legal authority to begin receiving their share of national revenue for the new financial year.
It also enables the National Treasury to start processing and releasing funds to counties, allowing them to finance development projects, improve service delivery, and carry out their constitutional responsibilities without unnecessary delays.
Under the newly signed law, counties will collectively receive Ksh428 billion, an amount that represents about 20.9 per cent of the latest audited national revenue.
This allocation is significantly higher than the constitutional requirement, which states that counties must receive at least 15 per cent of the most recently audited national revenue.
The increased allocation demonstrates the government’s continued commitment to supporting devolution and ensuring county governments have adequate financial resources.
President Ruto noted that the Ksh428 billion allocation is Ksh13 billion more than the Ksh415 billion that counties received during the 2025/2026 financial year.
He said the increase reflects the government’s efforts to strengthen county administrations and improve their capacity to deliver essential public services.
The allocation accounts for approximately 21 per cent of the latest audited national revenue, comfortably exceeding the constitutional minimum threshold.
The funds will now be distributed among all 47 county governments using the revenue-sharing formula approved under Article 217 of the Constitution.
This formula is designed to ensure that every county receives a fair share of national resources based on several important factors.
These include an equal share for all counties, population size, poverty levels, geographical size, and other development indicators aimed at promoting fairness across the country.
The adopted revenue-sharing formula also guarantees counties a stable baseline allocation while ensuring that areas with greater development needs receive additional support.
By considering different social and economic factors, the formula seeks to reduce regional inequalities and promote balanced development throughout Kenya.
Although the allocation is higher than the previous financial year’s funding, it is still lower than what the Council of Governors had requested earlier this year.
In March, while the Bill was under review by the Senate Standing Committee on Finance and Budget, the Council of Governors proposed a larger allocation, arguing that counties require additional funding to meet growing development demands and improve service delivery for residents.
Despite falling short of the governors’ proposal, the approved allocation is expected to provide counties with increased financial capacity to implement projects outlined in their annual budgets.
The additional resources are expected to support investments in sectors such as healthcare, agriculture, roads, water services, education support programmes, and other county development priorities.
The national government said the enhanced funding will further strengthen devolution by enabling county governments to perform the functions assigned to them under the Constitution more effectively.
With increased financial support, counties are expected to improve the quality of public services while accelerating economic and social development at the grassroots level.
By signing the County Allocation of Revenue Act, President Ruto has also cleared the final legal hurdle required before county disbursements can begin under the new financial year.
The National Treasury can now proceed with releasing funds according to the approved schedule, allowing county governments to begin implementing their planned programmes and projects.
The signing follows the President’s earlier approval of the Division of Revenue Bill, 2026, which was signed into law several weeks ago. The two laws perform different but closely related roles in Kenya’s public finance system.
The Division of Revenue Act determines how nationally collected revenue is shared between the national government and county governments.
After that overall allocation is approved, the County Allocation of Revenue Act specifies exactly how the counties’ share will be divided among the 47 county governments using the constitutional revenue-sharing formula.
In this case, the earlier legislation reserved the total amount of money to be allocated to county governments, while the law signed by President Ruto now provides the detailed distribution of the Ksh428 billion among individual counties based on the approved formula.
The increased county allocation comes at a time when county governments are facing growing public scrutiny over how they manage public funds.
In recent years, concerns have been raised over financial mismanagement, corruption allegations, delayed completion of development projects, and weak accountability mechanisms in several counties.
As counties prepare to receive the new allocation, many Kenyans are expected to closely monitor how the additional funds are utilised.
There is growing demand for greater transparency, prudent financial management, and improved accountability to ensure that the increased allocation translates into better services, infrastructure development, and tangible benefits for citizens across all parts of the country.
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