The Lower Eastern Times Opening The Third Eye
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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 Bill, passed without amendments, establishes the legal framework for the allocation and transfer of nationally collected revenue to counties, enabling devolved units to access funds necessary for service delivery and development projects.
Its approval follows the enactment of the Division of Revenue Act, 2026, which allocated 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 government efforts to strengthen devolution and improve services at the grassroots level.
Members of Parliament noted that the additional funding is expected to enhance critical sectors including healthcare, road infrastructure, water provision, agriculture, and early childhood education across the counties.
According to the allocation framework, Ksh387.43 billion will be distributed through the Baseline Allocation to support county operations and development programmes.
An additional Ksh4.46 billion has been set aside under the Affirmative Action Allocation to support 12 historically marginalized counties, helping address regional disparities and promote balanced development.
Further, Ksh36.1 billion will be shared using a weighted formula based on factors such as population size, poverty levels, income distance, and geographical area, ensuring counties with greater development challenges receive additional support.
The Bill also provides dedicated allocations to County Assemblies, reinforcing their oversight mandate and enhancing accountability in the management of public resources.
With the legislation now approved, county governments can proceed with budgeting, planning, and implementing development initiatives aimed at improving livelihoods, creating economic opportunities, and expanding access to essential services.
The funding is expected to accelerate local development projects and strengthen service delivery across the country, reaffirming Parliament’s commitment to supporting devolution as a key pillar of Kenya’s governance and development agenda.
