By Janet Nyamwamu
The National Assembly has approved the County Allocation of Revenue Bill, 2026, paving the way for the disbursement of KSh 428 billion to Kenya’s 47 county governments for the 2026/2027 Financial Year.
The Bill was passed without amendments and provides the legal framework for the distribution of nationally raised revenue to county governments, ensuring the continued delivery of essential services and development programmes.
Also Read
Its approval follows the enactment of the Division of Revenue Act, 2026, which allocates KSh 2.46 trillion to the National Government, KSh 10.2 billion to the Equalisation Fund, and KSh 428 billion to county governments.
The allocation represents an increase of KSh 13 billion from the KSh 415 billion allocated to counties in the 2025/2026 Financial Year, underscoring the Government’s commitment to strengthening devolution and enhancing service delivery at the grassroots level.
During debate on the Bill, Members of Parliament noted that the additional funding would support improvements in healthcare, road infrastructure, water access, agricultural programmes, and early childhood education across the country.
Under the approved allocation framework, KSh 387.43 billion will be distributed through the Baseline Allocation to support county operations and development initiatives.
A further KSh 4.46 billion has been earmarked as an Affirmative Action Allocation for 12 historically marginalised counties to help bridge development gaps and promote equitable growth.
In addition, KSh 36.1 billion will be allocated using a formula that takes into account population size, poverty levels, income disparities, and geographical factors, ensuring that counties with greater development needs receive adequate support.
The Bill also provides specific allocations for County Assemblies, strengthening their oversight role and enhancing accountability in the management of public resources.
