President William Ruto has signed the County Allocation of Revenue Bill, 2026, into law, paving the way for the disbursement of KSh428 billion to Kenya’s 47 county governments.

The signing took place at State House, Nairobi, with the new law providing counties with their equitable share of nationally collected revenue for the 2026/2027 financial year.

The allocation represents 20.9 percent of the latest audited national revenue, surpassing the constitutional minimum threshold of 15 percent that must be transferred to county governments.

Under the new law, the funds will be shared among all 47 counties using the revenue-sharing formula approved under Article 217 of the Constitution. The formula considers several factors, including a guaranteed equal share for every county, population size, poverty levels, and geographical area, with the aim of promoting fairness in resource distribution.

The increased allocation is expected to strengthen devolution by providing county governments with additional resources to implement development projects and improve service delivery in sectors such as healthcare, agriculture, water, roads, and other devolved functions.

The signing of the legislation clears the way for counties to access funds needed to implement their approved budgets and deliver services to residents during the current financial year.