President Ruto asserting to law the division of revenue bill at State House on Monday.

President William Ruto has officially assented to the Division of Revenue Bill, 2026 during a ceremony held at State House, Nairobi, marking a key step in the country’s budget process for the 2026/27 financial year.

The Bill provides the legal framework for how nationally raised revenue will be shared between the National Government and the 47 County Governments, ensuring that both levels of government receive their allocated share to support service delivery and development projects across the country. This annual legislation is a constitutional requirement meant to promote equity and strengthen devolution.

According to details from the assent, the agreement follows extensive deliberations between the National Assembly and the Senate, which had earlier engaged in negotiations over the equitable share for counties before reaching a final compromise. The framework now paves the way for counties to receive their allocations, which will support key sectors such as health, agriculture, infrastructure, and local development.

“The Bill allocates KSh428 billion to county governments, representing an increase of KSh13 billion, or 15 percent, over the KSh415 billion allocated in the 2025/26 Financial Year.

Significantly, 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.
The legislation also provides KSh10.25 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.”Says President William Ruto.

The ceremony at State House was attended by top government leaders, including senior officials from Parliament and the Executive, reflecting the importance of the Bill in Kenya’s fiscal planning process. Once signed into law, the Division of Revenue framework becomes the foundation upon which both national and county budgets are implemented.

With the assent, attention now shifts to how efficiently both levels of government will utilise the allocated resources in the new financial year, as counties prepare to operationalise their budgets and roll out planned programmes.