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The President signed the legislation at State House, Nairobi on Monday, formally operationalising the Division of Revenue Act 2026 and setting the legal basis for how county governments will receive and manage their share of nationally raised revenue in the new financial year.
In total, nine counties surpassed the 75 per cent mark of their annual targets. Twenty-four counties achieved between 50 and 74 per cent, while 14 counties remained below 49 per cent.
Development spending, however, remained low. Counties utilised only Sh72 billion of their planned Sh234.33 billion development allocation by March 31, 2026, translating to an absorption rate of 31 per cent.
The National Treasury on Tuesday released Sh35.27 billion to counties for May, while Treasury Cabinet Secretary John Mbadi assured senators that the June allocation of Sh33.20 billion would also be sent before the financial year comes to an end.
Kenya’s Government has acknowledged that rapid urbanisation is outpacing infrastructure development, creating challenges in regulating high-rise buildings, drainage systems and urban planning. The ministry cites enforcement efforts, tighter building-approval requirements under the National Building Code, 2024, and new coordination systems.
KENTTEC told MPs that since its formation in 2012, it has been working to reduce tsetse fly populations using monitoring tools such as the Flies Per Trap Per Day metric to guide control measures in affected areas.
The allocation follows a long-running dispute between the National Assembly and the Senate over the Division of Revenue Bill, 2026, which delayed agreement on how national revenue would be shared. The matter was resolved after seven mediation sessions that produced a final compromise.
The agreement came after several rounds of discussions involving the National Treasury and prevented a prolonged stalemate that had threatened to delay the flow of funds to devolved units.
He attributed the pressure to overstaffing, duplicated functions, and staffing imbalances, noting that while best practice recommends a ratio of 70 percent technical staff to 30 percent support staff
Thirty-four county governments have signed intergovernmental agreements with the Ministry of Education to keep funding bursary and scholarship programmes. MPs in the National Assembly questioned the constitutional and legal framework and whether counties may spend public funds without direct legislation.
Abdi Noor Mohamed claims billions allocated to the region have failed to translate into meaningful development, leaving residents without essential services despite substantial public investment
PS Kilemi outlined that the government had sought to improve transparency in the coffee value chain by separating responsibilities among regulatory agencies