President Ruto assents to Sh428bn Revenue Sharing Bill for counties

President William Ruto on Monday assented to the Division of Revenue Bill, 2026, clearing the way for the sharing of national revenue between the national and county governments for the 2026/27 financial year.

The law allocates Sh428 billion to counties and Sh10.25 billion to the Equalization Fund after completion of a mediation process between the National Assembly and Senate.

According to a parliamentary brief from the Thirteenth Parliament (Fifth Session), the Bill was first introduced in the National Assembly on February 19, 2026, and sponsored by the Chairperson of the Budget and Appropriations Committee, Samuel Atandi, M.P.

“The National Assembly considered and passed the Bill with amendments on Tuesday, March 10, 2026, and forwarded it to the Senate for consideration. The Senate considered and passed the Bill with amendments on Tuesday, May 12, 2026,” reads the brief.

The two Houses of Parliament later entered a mediation process after disagreements emerged over the equitable share to county governments.

“The Bill was subjected to a mediation process on account of variance on the amount of the Equitable Share to be allocated to county governments. On Tuesday, June 9, 2026, the Mediation Committee agreed on a version of the Bill which was subsequently approved by both Houses on Wednesday, June 10, 2026, thereby concluding the bicameral consideration of the Bill,” it says.

At the centre of the legislation is the constitutional mandate to share revenue between levels of government.

“The principal object of the Bill is to share revenue raised nationally between the national government and county governments for the 2026/27 financial year in accordance with Article 202, 203 and 218 of the Constitution,” adds the brief.

Under the law, county governments will receive Sh428 billion as equitable share, while Sh10.25 billion has been allocated to the Equalization Fund.

Parliament noted that the allocations align with the national fiscal framework and are intended to support stability in public spending.

“The allocations in the Bill take into account the fiscal framework set out in the Budget Policy Statement for Financial Year 2026/27 and are intended to ensure fiscal sustainability, specifically against the backdrop of escalating expenditure pressure on the fiscal framework occasioned by an increase in Consolidated Fund Services (CFS),” the brief explains.

The approved equitable share marks an increase from the previous financial year.

“The equitable share allocated to county governments exceeds the 15 per cent minimum allocation provided for under Article 203(2) of the Constitution. The increase of Sh13 Billion from the 2025 allocation is intended to facilitate county governments to enhance service delivery in performance of their assigned functions under the second part of the Fourth Schedule of the Constitution,” it adds.

Lawmakers highlighted that the additional funding is expected to improve planning and service delivery at county level.

With presidential assent granted, the legislation now clears the way for the next phase of the national budget process, including the Appropriations Bill, 2026, and the County Allocation of Revenue Bill, 2026.