Counties to receive Sh428 billion boost after MPs approve Revenue Bill

Members of Parliament approve the County Allocation of Revenue Bill 2026 on June 25, 2026. [PBU]

County governments are set to receive Sh428 billion in equitable share revenue for the 2026/2027 financial year after the  National Assembly approved the County Allocation of Revenue Bill, 2026.

The Bill, passed without amendments, provides the legal framework for distributing nationally raised revenue to county governments and is expected to strengthen service delivery and development projects across the country.

Its passage follows the enactment of the Division of Revenue Act, 2026, which allocated Sh2.46 trillion to the national government, Sh10.2 billion to the Equalization Fund and Sh428 billion to counties.

The allocation represents an increase of Sh13 billion from the Sh415 billion counties received in the 2025/2026 financial year, signalling continued fiscal support for devolution more than a decade after its introduction under the 2010 Constitution.

Alego Usonga MP Samuel Atandi, who chairs the relevant committee, said the Bill provides certainty to counties as they finalise budgets and development plans for the new financial year.

“The committee do report to the House the consideration of the County Allocation of Revenue Bill, Senate Bill No. 10 of 2026, and its approval thereof without amendments,” he said.

Lawmakers welcomed the allocation, describing it as a key step in strengthening devolution and improving access to essential services at the grassroots level.

MPs said the additional funding would enable counties to expand healthcare services, improve road infrastructure, increase access to clean water, support agricultural programmes and strengthen early childhood education.

The largest share, Sh387.43 billion, will be distributed through the baseline allocation to support both recurrent expenditure and development programmes.

To address regional disparities, Sh4.46 billion has been set aside as an affirmative action allocation for 12 historically marginalised counties. The funds are expected to help close long-standing gaps in infrastructure, healthcare, education and economic opportunity.

A further Sh36.1 billion will be distributed using a weighted formula based on population, poverty levels, income distance and geographical size, ensuring counties with greater needs receive additional support.

The Bill also provides for separate allocations to county assemblies to strengthen oversight and accountability in the use of public funds.

The approval comes as many counties face rising demand for services amid budgetary constraints and increasing operational costs. Governors have repeatedly called for higher allocations, arguing that counties carry heavy responsibilities in healthcare, agriculture, water services and local infrastructure.

Lurambi MP Titus Khamala said the increased funding is likely to accelerate development projects and stimulate local economies through job creation and improved service delivery.

Adding that the funds would support construction and upgrading of health facilities, rural roads, water projects and markets, as well as strengthen agricultural extension services and early childhood development programmes.