President William Ruto has assented to the County Allocation of Revenue Bill, 2026, setting KSh428 billion as the equitable share for Kenya’s 47 county governments in a move that strengthens devolution funding while also feeding into the growing political atmosphere ahead of the 2027 General Election.
The signing at State House, Nairobi, comes as the government positions the move as a constitutional and developmental milestone, with counties set to receive 20.9 per cent of the most recently audited national revenue—above the constitutional minimum of 15 per cent.
The funds will be shared using the revenue allocation formula under Article 217 of the Constitution, which balances equal share, population size, poverty levels, and geographical considerations to determine equitable distribution across counties.
“This allocation ensures that counties have the resources they need to fulfil their constitutional mandate and deliver services effectively to citizens,” President Ruto said, framing the law as part of his administration’s commitment to strengthening devolution.
The response from county leadership, through the Council of Governors, has been cautiously welcoming but firmly critical on implementation issues.
Governors say the increased allocation is a positive step, but insist that Kenya’s devolution success depends less on headline figures and more on predictability, timeliness, and full disbursement of funds.
In earlier and recurring statements, governors have warned that counties continue to struggle with delayed transfers and growing pending bills. Their consistent position has been that counties are often forced to operate under financial strain despite being assigned major service delivery functions.
“Counties cannot deliver services if funds are delayed or insufficient. Devolution must be fully funded for it to succeed,” the Council of Governors has repeatedly argued in past budget cycles.
County leaders have also long pushed for a higher and more predictable share of national revenue, arguing that devolved responsibilities—especially in health, agriculture, and infrastructure—require stronger fiscal backing than currently provided.
A senior county official echoed this view in reaction to the latest allocation:
“What matters is not just the allocation on paper, but whether counties receive the funds on time and in full to implement their budgets.”
The announcement has also drawn political attention as Kenya edges closer to the 2027 elections. Devolution funding has historically been a sensitive issue in national politics, often shaping alliances between the national government and county administrations.
Analysts note that while the allocation aligns with constitutional requirements, its timing is likely to be interpreted through a political lens as competition for influence at the county level intensifies.
Supporters of the government argue the increased allocation demonstrates commitment to devolution and grassroots development, while critics are expected to scrutinise both timing and implementation, particularly in relation to service delivery outcomes.
