President William Ruto has officially signed the Division of Revenue Bill 2026 into law. He assented to the legislation on Monday at State House in Nairobi during a formal ceremony.
The new law determines how national revenue will be shared between the central government and county governments. It sets the framework for budget distribution in the 2026 financial cycle.
According to Parliament officials, the law governs a total of Ksh2.9 trillion in shareable revenue. The National Government receives Ksh2.46 trillion under the new allocation.
County governments will receive Ksh428 billion to support devolved functions across all 47 counties. The Equalization Fund has been allocated Ksh10.25 billion to support marginalized regions.
Lawmakers Confirm Agreement
National Assembly Clerk Samuel Njoroge confirmed the figures during the announcement. He stated that all arms of government, including Parliament, Judiciary, and independent commissions, fall under the national allocation.
Lawmakers also agreed on the distribution after extended negotiations between the National Assembly and the Senate. The consensus helped resolve earlier disagreements on county funding levels.
The agreement followed several mediation meetings aimed at resolving disputes on county allocations. Both Houses of Parliament worked to reach a compromise that would avoid delays in budget implementation.
Officials described the outcome as a key step in strengthening devolution and ensuring timely funding for counties. The deal was finalized on June 9 at Parliament Buildings.
Leaders Welcome Agreement
Alego Usonga MP Samuel Atandi welcomed the deal and described it as a constitutional requirement. He said the outcome would benefit citizens across the country.
Senate Finance and Budget Committee Chairperson Ali Roba also praised the negotiations. He noted that the process was challenging but ultimately productive.
The new law clears the way for the Appropriations Bill 2026 and the County Allocation of Revenue Bill 2026. These will determine how funds are spent at both levels of government.
Authorities say the process will help unlock funds for counties on time. The focus now shifts to implementation of the approved budget framework.
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