President William Ruto has assented to the Division of Revenue Bill, 2026, paving the way for the sharing of nationally raised revenue between the National Government and County Governments for the 2026/27 financial year.
The signing took place at State House on Monday, June 15, 2026.
Under the new law, county governments will receive Sh428 billion, representing an increase of Sh13 billion from the Sh415 billion allocated in the 2025/26 financial year.
The allocation also reflects a 15 per cent increase, underscoring the continued expansion of funding to devolved units as part of efforts to strengthen service delivery at the county level.
The legislation further sets aside Sh10.25 billion for the Equalisation Fund, aimed at supporting marginalised regions and reducing development disparities across the country.
“These allocations have been carefully structured to safeguard fiscal sustainability while supporting national development priorities in light of rising expenditure pressures within the fiscal framework, including increased obligations under Consolidated Fund Services,” President Ruto said.
“Through this balanced approach, we continue to advance inclusive growth, strengthen devolution, and uphold prudent public financial management,” he added.
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