President Ruto has assented to the County Revenue Allocation Bill, 2026, at State House in Nairobi. This legislation allocates KSh428 billion as an equitable share of nationally raised revenue to the 47 county governments across Kenya. Notably, this allocation represents 20.9 percent of the most recently audited national revenue, which is well above the minimum constitutional threshold of 15 percent.
Enhanced Revenue Sharing to Strengthen County Devolution
The Act distributes the equitable share among the counties according to the revenue-sharing formula approved under Article 217 of the Kenyan Constitution. This formula ensures a stable and fair distribution, taking into account factors such as population size, poverty levels, and geographical size. By increasing the funds allocated to counties, the legislation aims to reinforce devolution, empowering local governments with the resources necessary to effectively serve their communities.
The increased allocation will significantly support county governments in fulfilling their constitutional mandates, enabling them to deliver quality services and pursue development priorities effectively. The move aligns with the government's broader goal of decentralizing power and resources, ultimately promoting equitable growth across all regions of Kenya.
Overall, President Ruto’s approval of the County Revenue Allocation Bill highlights a strategic effort to enhance local governance and improve service delivery at the county level. The legislation is expected to have a lasting impact on Kenya's devolution landscape, fostering more accountable and responsive county administrations.