President William Ruto has signed the County Allocation of Revenue Bill, 2026 into law, paving the way for the transfer of Sh428 billion in equitable share to the country’s 47 county governments.
The President assented to the legislation during a ceremony held at State House, Nairobi, describing the allocation as a significant step towards strengthening devolution and improving service delivery at the grassroots.
“The County Allocation of Revenue Act, 2026, reaffirms our government’s unwavering commitment to devolution by ensuring counties receive the resources they need to fulfil their constitutional responsibilities,” Ruto said.
The newly enacted law allocates Sh428 billion from nationally raised revenue to county governments. According to the government, the amount represents 20.9 per cent of the most recently audited national revenue, well above the constitutional minimum requirement of 15 per cent.
President Ruto said the increased allocation demonstrates the national government’s commitment to empowering counties to implement development programmes that directly benefit citizens.
“By allocating more than the constitutional minimum, we are ensuring that county governments have adequate resources to deliver quality healthcare, improve infrastructure, strengthen agricultural programmes and expand other essential public services,” he said.
Revenue sharing based on constitutional formula
The funds will be shared among the 47 counties using the revenue-sharing formula approved under Article 217 of the Constitution.
The formula considers several factors, including an equal share for every county, population size, poverty levels and geographical area to ensure a balanced and equitable distribution of resources.
“The approved formula guarantees fairness by providing every county with a stable allocation while recognising differences in population, levels of poverty and geographical size. This approach promotes equity and inclusive national development,” the President said.
Boost for devolution
Ruto noted that the additional funding would strengthen county governments by enabling them to finance projects outlined in their annual budgets and development plans.
He said the allocation would also enhance the delivery of devolved functions, improve accountability and support sustainable economic growth across the country.
“Strong counties are essential to building a stronger nation. This allocation will empower devolved governments to implement transformative projects, improve public services and respond more effectively to the needs of wananchi,” he said.
The President reiterated that his administration remains committed to protecting and strengthening devolution, describing it as one of Kenya’s most important constitutional achievements.
“We will continue working with county governments to ensure that devolution succeeds because it remains central to inclusive growth, equitable development and improved livelihoods for all Kenyans,” Ruto said.
The County Allocation of Revenue Act now provides the legal framework for the equitable distribution of the Sh428 billion among all 47 counties, enabling county governments to begin implementing their approved budgets for the 2026/27 financial year.
