NAIROBI, Kenya, Jun 15 — President William Ruto has signed the Division of Revenue (DoR) Bill, 2026 into law, formally allocating Sh428 billion in equitable share funding to county governments for the 2026/27 financial year.
The signing follows a breakthrough agreement between the National Assembly and Senate on June 10.
The President’s assent completes the legislative process that culminated in a mediated settlement, ending weeks of negotiations between the two Houses over the amount of national revenue to be devolved to counties.
The Sh428 billion allocation, anchored on an estimated Sh2.9 trillion in shareable revenue, will provide the primary source of funding for forty-seven county governments as they implement devolved functions including healthcare, agriculture, water services, county transport and early childhood education.
The final figure was agreed upon after seven mediation sessions convened to resolve differences between the National Assembly and Senate over the equitable share allocation under the Division of Revenue Bill, 2026.
The mediation committee also reinstated Clause 5 of the Bill, a provision intended to shield county allocations from reductions arising from national revenue shortfalls.
Speaking after the mediation agreement was reached, National Assembly Budget and Appropriations Committee Chairperson Samuel Atandi described the settlement as a significant milestone in the budget-making process.
“We have settled on Sh428 billion. This is a constitutional imperative and Kenyans are going to be happy,” Atandi said.
‘Victory for devolution’
Senate Finance and Budget Committee Chairman Ali Roba said the negotiations had been challenging but ultimately productive, noting that the agreement would facilitate the processing of the County Allocation of Revenue Bill and the approval of a disbursement schedule for county funds.
“It has been a very difficult but cordial engagement with the objective of pushing the country forward,” Roba said.
Several lawmakers hailed the deal as a victory for devolution, with Narok Senator Ledama Olekina welcoming both the increased allocation and the restoration of Clause 5, while Migori Senator Eddy Oketch emphasized the need for stronger accountability in county spending.
The signing of the Division of Revenue Act clears a critical constitutional hurdle ahead of the implementation of the 2026/27 budget and paves the way for the enactment of the County Allocation of Revenue Bill, which will determine how the Sh428 billion is shared among individual counties.
County governments had lobbied for increased allocations, arguing that rising expenditure demands and growing service delivery obligations required additional resources to sustain devolved functions.
The law also provides certainty for counties as they finalize their budgets ahead of the start of the new financial year on July 1.
Under Kenya’s devolved system of government, the Division of Revenue Act determines how nationally raised revenue is shared between the national and county governments, while the equitable share forms the backbone of county financing.
