Ruto Signs Law Unlocking Ksh428 Billion for Counties

President William Ruto Signs a Bill at State House

President William Ruto has signed the County Allocation of Revenue Bill, 2026, into law, unlocking Ksh428 billion for Kenya's 47 counties. The signing took place at State House, Nairobi, on Monday, June 29, after the Senate presented the Bill for presidential assent.

The new law completes the final stage of the revenue-sharing process between the national government and county governments. It now allows the National Treasury to prepare payment schedules and begin releasing funds to counties.

The legislation determines how counties will share funds already approved under the Division of Revenue Act, 2026. Lawmakers use a formula-based approach known as horizontal allocation to distribute the money among all devolved units.

Parliament Completed the Process Without Delay

During the signing ceremony, the Clerk of the Senate explained how Parliament processed the Bill without disagreements. He said the Senate introduced and passed the Bill before forwarding it to the National Assembly.

The National Assembly approved the Bill without making further amendments. That outcome eliminated the need for mediation between the two Houses of Parliament.

The Clerk said the process complied fully with Article 110(5) of the Constitution. The provision allows a Bill to proceed for presidential assent once both Houses approve the same version.

He explained that the Senate Speaker submitted the Bill because the Senate originated the legislation. That completed the constitutional process before the President signed it into law.

Law Sets Formula for Sharing Revenue

The Clerk said the law establishes how counties will divide the equitable share allocated to devolved governments. It also requires the National Treasury to publish payment schedules for every county.

The legislation includes spending limits on recurrent expenditure across county governments. The measure aims to ensure counties balance operational costs with long-term development projects.

Officials said the framework encourages responsible use of public resources across all counties. They added that counties must avoid spending excessive amounts on salaries and administrative expenses.

Counties Receive Funds Before Budget Deadline

Parliament noted that counties depend on the law to finalise their annual budgets before the financial year begins. Early approval allows county governments to plan projects without unnecessary uncertainty.

Officials described this year's approval as one of the earliest in recent years. They said the timely passage would help counties avoid delays that previously affected budget implementation.

The law formally allocates the full Ksh428 billion approved for county governments. The funding will support service delivery across different sectors during the 2026/2027 financial year.

How the Money Will Be Shared

Parliament allocated Ksh387.43 billion through the baseline equitable share for all counties. The allocation will finance daily operations and development programmes across the country.

Another Ksh4.46 billion will support 12 historically marginalised counties through an affirmative action allocation. The additional funding seeks to reduce long-standing regional development inequalities.

The remaining Ksh36.1 billion will follow a weighted formula approved by Parliament. The formula considers population, poverty levels, income distance and geographical size when distributing resources.

Officials said the approach promotes fairness while recognising different development challenges facing individual counties. They believe the formula will help direct more resources to areas with greater needs.

Higher Allocation for Devolved Services

The County Allocation of Revenue Act follows the earlier enactment of the Division of Revenue Act, 2026. That law divided nationally raised revenue between the national and county governments.

Under the approved framework, counties will receive Ksh428 billion from a national revenue base of Ksh2.46 trillion. The arrangement also provides separate allocations for the Equalisation Fund.

The county allocation represents an increase of Ksh13 billion compared with the previous financial year. Parliament expects the additional resources to strengthen devolved service delivery across the country.

Counties will channel the funding toward critical sectors that directly affect citizens' lives. These sectors include healthcare, agriculture, water services, roads and early childhood education.

Senior Leaders Attend Assent Ceremony

Several senior government officials attended the signing ceremony at State House. They included Prime Cabinet Secretary Musalia Mudavadi, Senate Speaker Amason Kingi, the Solicitor General and Treasury Principal Secretary Chris Kiptoo.

The government now expects counties to finalise their budgets and begin implementing planned development programmes. Treasury will publish the official disbursement schedules before releasing funds to the 47 county governments.