President William Ruto has signed the Division of Revenue Bill, 2026 into law, paving the way for the allocation of national revenue between the national and county governments for the 2026/27 financial year.
The President assented to the Bill on Monday, June 15, during a ceremony held at State House, Nairobi, marking a key milestone in the budget implementation process.
According to National Assembly Clerk Samuel Njoroge, the newly enacted law provides for the sharing of Ksh2.9 trillion in nationally collected revenue.
Division of Revenue Bill 2026 signed into law. Photo: Courtesy.
Under the approved framework, the national government will receive Ksh2.46 trillion to finance its operations and institutions, while county governments will receive Ksh428 billion.
An additional Ksh10.25 billion has been allocated to the Equalization Fund.
The national government’s share will cater for expenditure by the Executive, Parliament, Judiciary, constitutional commissions, and other independent offices and agencies.
The enactment of the law also clears the way for Parliament to consider and pass the Appropriations Bill, 2026, as well as the County Allocation of Revenue Bill, 2026.
The signing comes shortly after the National Assembly and the Senate resolved a prolonged dispute over the allocation to counties.
The two Houses reached an agreement following a series of consultations and mediation sessions aimed at finding common ground on the revenue-sharing formula.
Lawmakers from both chambers described the agreement as a significant achievement for devolution and a crucial step toward ensuring counties receive funding on time to support service delivery and development programmes.
The consensus settled the county allocation at Ksh428 billion, ending weeks of negotiations between the National Assembly and the Senate.
The breakthrough is expected to accelerate the processing of other budget-related legislation and facilitate the timely release of funds to county governments.
With the Division of Revenue Act now in force, attention shifts to the approval of the County Allocation of Revenue Bill and the preparation of disbursement schedules that will enable counties to access their allocations and implement development projects across the country.
