President William Ruto has signed the County Allocation of Revenue Bill, 2026 into law, paving the way for the disbursement of funds to the 47 county governments.
The Head of State assented to the legislation on Monday, June 29, during a ceremony at State House, Nairobi.
The Bill was sponsored in the Senate by Mandera Senator Ali Roba, who chairs the Senate Finance and Budget Committee.
Ruto signs county allocation of revenue bill 2026 into law. Photo: Courtesy.
According to Senate Clerk Jeremiah Nyegenye, the law outlines the amount of money each county will receive from the Consolidated Fund.
It also requires the Cabinet Secretary for the National Treasury to publish a schedule detailing the transfers to be made to county governments once the law takes effect.
Nyegenye further explained that the legislation sets recurrent expenditure ceilings for every county to ensure a balanced allocation between day-to-day operational costs and development spending.
He noted that the law is essential because county governments cannot finalize and implement their budgets until they know the exact amount of funding they will receive from the national government.
The development comes just weeks after President Ruto assented to the Division of Revenue Bill, 2026, which determines how nationally raised revenue is shared between the national and county governments.
During the signing of that law, National Assembly Clerk Samuel Njoroge explained that the Act allocates the Ksh2.9 trillion shareable revenue among the two levels of government and the Equalization Fund.
Under the revenue-sharing formula, the national government will receive Ksh2.46 trillion to fund its operations, including the Executive, Parliament, the Judiciary, constitutional commissions, and independent offices.
County governments have been allocated Ksh428 billion, while Ksh10.25 billion has been set aside for the Equalization Fund.
