President William Ruto has signed the Division of Revenue Act 2026 into law, paving the way for the disbursement of Ksh428 billion to county governments and the implementation of the 2026/27 budget.
President William Ruto has officially signed the Division of Revenue Act, 2026 into law, clearing the way for the implementation of the national budget and the release of billions of shillings to county governments.
The President assented to the legislation during a ceremony held at State House, Nairobi, on Monday, marking a significant milestone in the country’s budget-making process.
The new law outlines how the country’s Ksh2.9 trillion shareable revenue will be distributed between the national and county governments during the 2026/27 financial year.
Counties Allocated Ksh428 Billion
Speaking during the signing ceremony, National Assembly Clerk Samuel Njoroge said the Act allocates Ksh2.46 trillion to the national government and its institutions, while county governments will receive Ksh428 billion.
An additional Ksh10.25 billion has been set aside for the Equalisation Fund, which supports development projects in marginalized areas.
According to Njoroge, the national government’s share will fund key institutions including the Executive, Parliament, Judiciary, constitutional commissions and independent offices.
The allocation to counties is expected to strengthen service delivery and support development projects across the 47 devolved units.
Law Clears Way for Budget Implementation
The signing of the Division of Revenue Act is a crucial step in the budget process and now paves the way for Parliament to consider and pass the Appropriations Bill, 2026, as well as the County Allocation of Revenue Bill, 2026.
Once approved, the legislation will facilitate the timely release of funds to county governments and ensure smooth implementation of government programmes in the new financial year.
Breakthrough After Parliamentary Mediation
The enactment of the law follows weeks of negotiations between the National Assembly and the Senate over the amount of money to be allocated to counties.
The two Houses reached a compromise earlier this month after a series of mediation meetings aimed at resolving the dispute.
Lawmakers from both chambers described the agreement as a major victory for devolution and fiscal stability.
Alego Usonga MP Samuel Atandi welcomed the consensus, saying the settlement reflected the commitment of Parliament to uphold constitutional requirements and protect county funding.
“We have settled on Ksh428 billion. This is a constitutional imperative, and Kenyans are going to be happy,” Atandi said following the agreement.
Focus Turns to Timely Fund Disbursement
Senate Finance and Budget Committee Chairperson Ali Roba noted that although negotiations had been challenging, both Houses remained focused on ensuring counties receive their allocations without delays.
He emphasized the need to complete the remaining budget processes, including the County Allocation of Revenue Bill and disbursement schedules, to unlock funds for county governments on time.
The signing of the Division of Revenue Act is expected to provide certainty to both national and county governments as they prepare to roll out development programmes and public services under the 2026/27 budget.
With the legislation now in force, attention shifts to the implementation phase and the timely transfer of resources needed to drive economic growth and strengthen devolution across the country.
