By Fridah Mbuvi, June 15, 2026
President William Ruto has signed the Division of Revenue Bill, 2026, into law at State House, Nairobi, formally setting the framework for sharing nationally raised revenue between the national government and the 47 county governments for the 2026/2027 financial year.
The signing clears the constitutional pathway for the equitable distribution of billions of shillings to counties, enabling them to fund devolved services such as healthcare, agriculture, early childhood development, and county infrastructure projects.
The law establishes the fiscal split between the two levels of government, balancing national obligations—including debt servicing and large-scale infrastructure development—with the constitutional requirement to ensure counties receive their equitable share. The arrangement is intended to strengthen service delivery at the grassroots level while maintaining macroeconomic stability at the national level.
With the bill now enacted, attention shifts to Parliament for the next legislative step, the County Allocation of Revenue Act (CARA), which will determine the exact share each county will receive. Once finalized, county governments will use the allocations to complete and pass their respective budgets for the financial year.
The enactment is expected to improve predictability in public finance management and reduce the delays in disbursement that have in previous years led to cash flow challenges in county administrations.
