The National Assembly has approved the County Allocation of Revenue Bill, 2025, unlocking Ksh415 billion for disbursement to the 47 county governments in the 2025/26 financial year.

In a statement posted on its official Facebook page on Wednesday, August 6, 2025, Parliament said the Bill gives effect to Article 218(1)(b) of the Constitution by providing a legal framework for equitable distribution of nationally raised revenue among counties.

“The National Assembly has passed the County Allocation of Revenue Bill, 2025 (Senate Bills No. 9 of 2025), paving the way for the equitable distribution of Kshs. 415 billion to the 47 County Governments for the Financial Year 2025/26,” the statement read.

According to Parliament, the Bill also facilitates the transfer of funds from the Consolidated Fund to respective County Revenue Funds in accordance with Article 217 of the Constitution.

“The County Allocation of Revenue Bill contains the first schedule, which details the equitable share allocated to each of the 47 counties, based on the revenue-sharing formula approved by Parliament, and the second schedule provides ceilings on the recurrent expenditures for County Assemblies and County Executives, to promote fiscal discipline and accountability,” the statement outlined.

This, they said, was made possible following the extensive negotiations between the two Houses of Parliament.

“The Budget and Appropriations Committee, chaired by Hon. Samuel Atandi, adopted the Bill following the successful conclusion of mediation talks between the National Assembly and the Senate on the Division of Revenue Bill, 2025,” the statement added.

Revenue distribution framework

According to Parliament, the Ksh415 billion allocation is set to be distributed across three main categories under the Fourth Basis for Revenue Sharing formula, which Parliament approved on June 24, 2025.

“The revenue sharing is anchored on the Fourth Basis for Revenue Sharing, which Parliament approved on June 24, 2025,” the statement continued.

Under this framework, the allocation will be structured as follows: Ksh387.425 billion as baseline allocation reflecting the previous year’s share, Ksh4.46 billion in affirmative allocation equally distributed among 12 historically marginalised counties, and an additional Ksh23.115 billion allocated through weighted parameters.

The new formula, which will guide allocations for a five-year period, will also consider key indicators including population, basic share, poverty levels, and geographical size, aiming to promote both equity and accountability across the devolved units.

“This formula will guide allocations for a five-year period, from FY 2025/26 to FY 2029/30,” the statement added.