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.
Under the new law, county governments will receive KSh428 billion as their equitable share of revenue, marking an increase of KSh13 billion from the KSh415 billion allocated in the 2025/26 financial year.
The allocation places the counties’ share above the constitutional minimum threshold of 15 per cent, a move aimed at reinforcing devolution and improving service delivery across the country.
The legislation also sets aside KSh10.25 billion for the Equalisation Fund, representing a 0.5 per cent increase intended to support development in marginalised regions and reduce disparities in access to public services.
According to the government, the allocations have been structured to balance the need for fiscal sustainability with growing expenditure demands, including obligations under the Consolidated Fund Services.
The latest revenue-sharing framework is expected to strengthen county operations while supporting national development priorities and promoting prudent management of public finances.
