Lilian Nyiva
President William Ruto on Monday signed into law the Division of Revenue Bill, 2026, at State House, Nairobi, marking a significant step in the implementation of the country's 2026/27 financial year budget.
The new law provides the framework for sharing nationally collected revenue between the national government and the 47 county governments, enabling both levels of government to carry out their constitutional responsibilities.
Revenue Sharing Framework
The Division of Revenue Act outlines how revenue raised nationally will be distributed between the national and county governments. The legislation is a constitutional requirement and serves as the foundation for funding government operations and development programmes across the country.
The law ensures that county governments receive their equitable share of revenue to support devolved functions, including healthcare, agriculture, transport, and local development projects.
Key Step in Budget Implementation
The signing of the Bill is a crucial milestone in Kenya's budget-making process ahead of the start of the 2026/27 financial year. It allows the government to proceed with the allocation and disbursement of funds to various sectors and county administrations.
The enactment of the law follows its approval by Parliament after deliberations on revenue allocation proposals and budget priorities.
Support for Devolution
County governments are expected to benefit from the legislation through continued funding for essential services and development initiatives. The law reinforces Kenya's devolved system of governance by ensuring counties have access to resources needed to serve residents effectively.
The Division of Revenue Act will also guide the subsequent allocation of funds to individual counties through the County Allocation of Revenue process.
State House Assent Ceremony
President Ruto signed the Bill into law during a ceremony at State House, Nairobi, attended by senior government officials. The assent clears the way for the implementation of revenue-sharing arrangements and budget plans for the upcoming financial year.
The move underscores the government's commitment to strengthening public finance management and supporting service delivery at both the national and county levels.
