President William Ruto has signed the County Allocation of Revenue Bill, 2026 into law, authorising the distribution of Sh428 billion in equitable share to Kenya’s 47 county governments for the 2026/27 financial year.

The President assented to the Bill at State House, Nairobi, on Monday, completing the legislative process required before the National Treasury can begin releasing funds to counties.

The allocation is Sh13 billion higher than the Sh415 billion shared among counties in the 2025/26 financial year. It also exceeds the constitutional minimum allocation to county governments, which must be at least 15 per cent of the most recently audited nationally raised revenue.

The County Allocation of Revenue Act gives legal effect to the distribution of funds among individual counties after Parliament determines the total amount to be shared through the Division of Revenue Act. While the Division of Revenue Act allocates revenue between the national and county governments, the County Allocation of Revenue Act specifies the amount each of the 47 counties will receive under the approved revenue-sharing formula.

With the law now in force, the National Treasury can proceed with the disbursement of funds to county governments for implementation of their approved budgets during the 2026/27 financial year. The equitable share finances functions assigned to county governments under the Constitution, including public health services, agriculture, county transport, water and sanitation, early childhood education, trade development, and other devolved services. It also supports county recurrent expenditure, development projects, and statutory financial obligations.

The Bill completed its passage through Parliament after consideration by both Houses. The Senate approved the legislation with amendments before forwarding it to the National Assembly, which subsequently passed the revised version. It was then presented to the President for assent in accordance with Article 115 of the Constitution.

The annual County Allocation of Revenue Act is one of the key budget implementation laws enacted after Parliament approves the national budget. Without it, the equitable share approved for county governments cannot be legally distributed to individual counties.

The Sh428 billion allocation forms part of the financing framework for the 2026/27 budget and reflects the continued implementation of Kenya’s devolved system of government established under the 2010 Constitution. County governments rely on the equitable share as their principal source of funding, with the allocations supporting service delivery and development programmes across all 47 devolved units.

The law comes into effect at the beginning of the new financial year, allowing the National Treasury to commence the scheduled transfer of funds to county governments in line with the approved budget and the annual cash disbursement programme.