President William Ruto has assented to the County Allocation of Revenue Bill, 2026, officially unlocking Ksh428 billion for Kenya's 47 county governments for the 2026/2027 financial year.
The President signed the Bill into law during a ceremony held at State House, Nairobi, on Monday, June 29, 2026, after it was formally presented by the Senate. The enactment marks the final stage of the county revenue-sharing process and clears the way for the National Treasury to begin disbursing funds to devolved units.
The legislation determines how the equitable share allocated to county governments under the Division of Revenue Act will be distributed among the 47 counties through a formula-based horizontal allocation.
During the signing ceremony, the Clerk of the Senate explained that the Bill progressed smoothly through Parliament without requiring mediation between the two Houses.
"This is a Bill that was introduced in the Senate by the Senator for Mandera County, Chairman of the Finance and Budget Committee of the Senate, Ibrahim Ali Roba," the Clerk said during the ceremony.
He noted that although the Senate passed the Bill with amendments, the National Assembly subsequently approved it without making further changes, allowing it to proceed directly for presidential assent.
"Having been passed in the same form by both Houses without regard to mediation, it is submitted for Your Excellency's assent by the Speaker of the House in which the Bill originated, this being the Senate," he explained.
The Clerk further stated that the legislation outlines the distribution of county allocations as required under Article 218 of the Constitution and obligates the Cabinet Secretary for the National Treasury to publish payment schedules for transfers from the Consolidated Fund once the law takes effect.
"The principal object of the Bill is the horizontal equitable share due to the county level of government among the counties pursuant to Article 218," he said.
He added that the Act also introduces ceilings on county recurrent expenditure to encourage prudent financial management and ensure more resources are directed toward development projects.
"This is intended to ensure that there is a fair balance between current expenses and development expenses," he noted.
The Senate also emphasized the importance of enacting the legislation before the start of the new financial year, noting that county governments cannot complete their budget-making process without knowing the exact amount allocated to each county.
"The enactment of this Bill is critical for county governments because they cannot conclude their budget processes until they know their share from the equitable allocation. It is fitting that it has been passed before the start of the financial year," the Clerk said.
The signing of the County Allocation of Revenue Bill now enables the National Treasury to prepare disbursement schedules, allowing counties to implement their budgets and finance service delivery, development projects, and essential public services during the 2026/2027 financial year.
