More Cash for Counties: MPs Approve Ksh 13 Billion Funding Increase

The National Assembly has passed the County Allocation of Revenue Bill, 2026, which will disburse Ksh 428 billion in equitable share revenue to the 47 county governments for the 2026/2027 Financial Year.

The Bill, which was approved without amendments, provides the legal framework for the allocation and transfer of nationally raised revenue to counties.

This ensures that the devolved units receive enough resources needed to deliver essential services to citizens.

The passage of the bill comes after the enactment of the Division of Revenue Act, 2026.

This allocates Ksh 2.46 trillion to the National Government, Ksh 10.2 billion to the Equalisation Fund and Ksh 428 billion to county governments.

Allocation Increased

The allocation marks an increase of Ksh 13 billion from the Ksh 415 billion allocated to counties in the 2025/2026 Financial Year.

Speaking during consideration of the Bill, lawmakers noted that the additional funding will enable counties to enhance healthcare services, improve road infrastructure, expand access to clean water, support agricultural programmes and strengthen early childhood education.

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Under the allocation formula, Ksh 387.43 billion will be distributed through the Baseline Allocation to support the day-to-day operations and development programmes of county governments.

A further Ksh 4.46 billion has been earmarked as an Affirmative Action Allocation to benefit 12 historically marginalised counties, helping bridge the development gaps and promote equitable growth across the country.

Separate Allocations

Additionally, Ksh 36.1 billion will be shared using a weighted formula that takes into account population, poverty levels, income distance and geographical size, ensuring that counties with greater development needs receive additional support.

The Bill also provides separate allocations to County Assemblies, reinforcing their oversight role and strengthening accountability in the management of public resources.

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With the passage of this bill, county governments can proceed with planning and implementing development programmes aimed at improving livelihoods, creating economic opportunities and enhancing access to public services for millions of Kenyans.

The allocation of the money is expected to boost local development initiatives and accelerate the delivery of projects that directly impact communities.

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