President William Ruto on Monday assented to the County Allocation of Revenue Act, 2026, paving the way for the disbursement of Sh428 billion to the country’s 47 county governments for the 2026/27 financial year.
The signing ceremony was held at State House, Nairobi, where the President said the allocation would strengthen devolution by providing counties with the resources needed to deliver essential public services and implement development programmes.
The Act allocates Sh428 billion as the equitable share of nationally raised revenue to county governments. The allocation represents 20.9 percent of the most recently audited national revenue, surpassing the constitutional minimum requirement of 15 percent.
The funds will be shared among the 47 counties using the revenue-sharing formula approved under Article 217 of the Constitution. The formula takes into account factors such as equal share, population, poverty levels and geographical size to ensure equitable distribution of resources.
President Ruto said the increased allocation demonstrates the government’s commitment to strengthening devolution and improving service delivery across the country.
“The enhanced allocation will strengthen devolution by equipping county governments with the resources they need to fulfil their constitutional mandate and deliver quality services in line with their budgets and development priorities,” he said.
The latest allocation marks an increase from the Sh415 billion equitable share allocated to counties during the 2025/26 financial year.
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