The National Assembly has approved the County Allocation of Revenue Bill, 2026, paving the way for the disbursement of KSh 428 billion to Kenya’s 47 county governments for the 2026/2027 financial year.
The bill passed unaudited and establishes the legal basis for channeling national revenue to counties, guaranteeing the ongoing provision of key services and development projects.
Its passage follows the enactment of the Division of Revenue Act, 2026, which channels KSh 2.46 trillion to the national government, KSh 10.2 billion to the equalisation fund, and KSh 428 billion to the counties.
This allocation rises by KSh 13 billion from the KSh 415 billion earmarked for counties in 2025/2026, highlighting the government’s resolve to deepen devolution and boost grassroots service delivery.
During debates, MPs noted that the extra funds would underpin enhancements in healthcare, road infrastructure, water access, agricultural initiatives, and early‑childhood education across the country.
KSh 387.43 billion will be disbursed through the baseline allocation to support county operations and development plans.
An additional KSh 4.46 billion is earmarked as an affirmative action allocation for 12 historically marginalised counties to close development gaps and foster equity.
Moreover, KSh 36.1 billion will be distributed using a formula that considers population, poverty, income inequality, and geographic factors, ensuring that more needy counties receive adequate support.
The bill also allocates specific sums to county assemblies, reinforcing their oversight duties and improving accountability in public‑resource management.