The National Assembly has approved the County Allocation of Revenue Bill, 2026, paving the way for the disbursement of Ksh428 billion in equitable share revenue to the country’s 47 county governments for the 2026/2027 financial year.

The Bill, which was passed without amendments, provides the legal framework for the allocation and transfer of nationally raised revenue to counties, enabling devolved units to access funds for service delivery and development programmes.

Its passage 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 allocation marks an increase of Ksh13 billion from the Ksh415 billion allocated to counties in the 2025/2026 financial year.

“The National Assembly has passed the County Allocation of Revenue Bill, 2026, paving the way for the disbursement of Ksh 428 billion in equitable share revenue to the country’s 47 county governments for the 2026/2027 Financial Year,” read the X post in part.

Allocation formula targets equity

According to Parliament, Ksh387.43 billion will be distributed through the Baseline Allocation to support county operations and development programmes.

A further Ksh4.46 billion has been set aside as an Affirmative Action Allocation for 12 historically marginalised counties to help address development disparities and support equitable growth.

Additionally, Ksh36.1 billion will be shared using a weighted formula that considers factors such as population, poverty levels, income distance and geographical size. The Bill also provides separate allocations to County Assemblies to support their oversight responsibilities and strengthen accountability in the management of public resources.

During debate on the legislation, lawmakers noted that the additional funding would support the delivery of services in key sectors managed by county governments.

These include healthcare, road infrastructure, water services, agricultural programmes and Early Childhood Development Education (ECDE).

Counties set to implement development programmes

With the passage of the Bill, county governments can now proceed with planning and implementing programmes and projects for the 2026/2027 financial year.

The allocation is expected to support development initiatives across the counties while facilitating access to public services at the grassroots level.

The approval of the County Allocation of Revenue Bill comes as Parliament continues consideration of other financial legislation linked to the implementation of the national budget.

The revenue-sharing framework is a key component of Kenya’s devolved system of government established under the 2010 Constitution, which provides for the transfer of nationally raised revenue to county governments.

Parliament said the allocation will ensure resources reach all parts of the country through the devolved system, enabling county governments to carry out their constitutional functions and development priorities during the new financial year.