President William Ruto has signed the County Allocation of Revenue Bill 2026 into law.
The Head of State assented to the legislation on Monday, June 29, during a ceremony at State House, Nairobi.
The bill was introduced in the Senate by Mandera Senator Ali Roba, who is the chair of the Senate Finance and Budget Committee.
Highlighting the bill, Senate Clerk Jeremiah Nyegenye said it outlines the amount of money each county will receive from the Consolidated Fund.
“The bill sets out in a schedule the respective share of each county and requires the Cabinet Secretary for Treasury to publish a schedule setting out the transfers that will be made to the counties from the consolidated fund upon the enactment of the bill,” said Nyegenye.
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The Senate Clerk added that the County Allocation of Revenue Bill sets expenditure ceilings for recurrent spending by each county.
“The bill also sets out budget ceilings for recurrent expenditure for each county. This is intended to ensure there is a fair balance between recurrent expenses and development expenditure,” he noted.
According to Nyegenye, the legislation is critical because county governments cannot finalize their budgets without knowing the amount they will receive.
This comes weeks after President Ruto signed the Division of Revenue Bill 2026 into law.
Speaking during the signing of the new law, National Assembly Clerk Samuel Njoroge said the Act sets out how the Ksh2.9 trillion shareable revenue will be divided between the national government and county governments.
Njoroge noted that Ksh2.46 trillion has been allocated to the National government, Ksh 428 billion to county governments, and Ksh10.25 billion for the Equalization Fund.
“Out of the Ksh2.9 trillion, Ksh2.46 trillion will go to the national government and entities under the national government, including the executive, parliament, judiciary, constitutional commissions, and independent bodies.
“They also agreed that Ksh428 billion will go to our 47 county governments. They also agreed to set aside Ksh10.2 billion for the purposes of the equalization fund,” said Njoroge.
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