By Issa Hussein - Reporter
Kenya, 25 June 2026 - The National Assembly has approved the County Allocation of Revenue Bill, 2026, clearing the way for the release of KSh428 billion in equitable share revenue to Kenya's 47 county governments for the 2026/2027 financial year.
The legislation, which was passed without amendments, establishes the framework for distributing nationally collected revenue to county governments, enabling them to finance development projects and deliver essential services.
Its approval follows the enactment of the Division of Revenue Act, 2026, which allocates KSh2.46 trillion to the national government, KSh10.2 billion to the Equalisation Fund, and KSh428 billion to county governments.
The latest allocation represents an increase of KSh13 billion from the KSh415 billion allocated to counties in the 2025/2026 financial year, reflecting continued efforts to strengthen devolution and improve service delivery at the grassroots level.
Members of Parliament said the additional funding will support key sectors including healthcare, road infrastructure, water supply, agriculture and early childhood education, helping counties meet growing public demands for services.
Under the approved allocation formula, KSh 387.43 billion will be distributed as Baseline Allocation to support county operations and development programmes.
An additional KSh 4.46 billion has been set aside under the Affirmative Action Allocation to support 12 historically marginalised counties and address long-standing development disparities.
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Meanwhile, KSh36.1 billion will be shared using a weighted formula that factors in population size, poverty levels, income distance and geographical area, ensuring counties with greater development challenges receive additional resources.
The Bill also provides allocations to County Assemblies to facilitate their oversight responsibilities and strengthen accountability in the use of public funds.
The approval of the legislation allows county governments to finalize their budgets and proceed with the implementation of projects and programmes aimed at improving livelihoods, expanding economic opportunities and enhancing access to public services across the country.
The increased allocation is expected to accelerate development initiatives in counties while reinforcing the role of devolution in promoting equitable growth and bringing services closer to wananchi.