Ruto assents to Revenue Sharing Bill 2026, allowing counties to get Sh428b
National
By
Mike Kihaki
| Jun 15, 2026
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 new law allocates Sh428 billion to county governments, marking an increase of Sh13 billion from the Sh415 billion allocated in the 2025/26 financial year.
The move is expected to strengthen devolution and improve service delivery across the 47 counties.
President Ruto said the allocation demonstrates the government’s commitment to supporting county governments and ensuring resources reach communities across the country.
“The equitable share allocated to county governments exceeds the constitutional minimum threshold of 15 per cent, reaffirming our commitment to strengthening devolution and enhancing service delivery across the country,” he said.
The legislation also sets aside Sh10.25 billion for the Equalisation Fund, an increase of 0.5 per cent aimed at accelerating development in historically marginalized regions and reducing inequalities between different parts of the country.
“The legislation also provides Sh10.25 billion for the Equalisation Fund, reflecting an increase of 0.5 per cent and underscoring the Government’s resolve to promote equitable development and address regional disparities,” the President noted.
The Division of Revenue Bill is a critical piece of legislation that determines how revenue collected nationally is shared between the two levels of government. Its enactment is required annually under the Constitution to facilitate budget implementation.
Since the promulgation of the Constitution in 2010, Kenya has progressively increased allocations to county governments as part of efforts to deepen devolution and bring services closer to wananchi.
Counties rely heavily on equitable share allocations to fund health services, agriculture, county roads, water projects, and other devolved functions.
President Ruto said the allocations had been carefully structured to balance development needs with fiscal responsibility amid growing expenditure pressures.
“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,” he said.
The President's assent follows a breakthrough agreement reached on June 10 between the National Assembly and Senate after weeks of negotiations over the amount to be devolved to counties.
The final figure was agreed upon after seven mediation sessions convened to resolve differences between the two houses.
The mediation committee also reinstated Clause 5 of the Bill, a provision designed to protect county allocations from reductions arising from national revenue shortfalls.
National Assembly Budget and Appropriations Committee Chairperson Samuel Atandi welcomed the agreement, saying: “We have settled on Sh428 billion. This is a constitutional imperative, and Kenyans are going to be happy.”
Similarly, Senate Finance and Budget Committee Chairman Ali Roba described the negotiations as difficult but productive.
“It has been a very difficult but cordial engagement with the objective of pushing the country forward,” Roba said.