County governments across Kenya are set to receive Sh428 billion in equitable share revenue for the 2026/2027 financial year after the National Assembly passed the County Allocation of Revenue Bill, 2026. The bill cleared the chamber without a single amendment, providing the legal framework needed to distribute nationally collected revenue to all 47 devolved units in line with constitutional requirements.
This year’s allocation marks a notable improvement over last year’s figures — counties received Sh415 billion in the 2025/2026 financial year, meaning the new bill adds Sh13 billion to the national devolution kitty. The increase comes at a time when county administrations are under intense pressure to deliver more services to growing populations while managing limited alternative revenue streams beyond the equitable share.
The Sh428 billion has been structured across three distinct funding channels. The largest portion — Sh387.43 billion — forms the baseline allocation, covering counties’ day-to-day recurrent expenditure as well as long-term development programmes. A dedicated Sh4.46 billion has been ring-fenced as affirmative action funding for 12 historically marginalized counties, a deliberate intervention to close regional development gaps that have persisted for decades. The remaining Sh36.1 billion will be distributed through a weighted formula that accounts for each county’s population size, poverty levels, income distance, and total geographical area.
The bill’s clean passage was confirmed by Alego Usonga MP Samuel Atandi, who chairs the committee that scrutinised the legislation before it came to the floor. “The committee do report to the House the consideration of the County Allocation of Revenue Bill…and its approval thereof without amendments,” Atandi told the House. The committee’s unanimous endorsement signals broad political consensus around the proposed allocation structure.
Beyond the figures, lawmakers were emphatic about what the additional funding should deliver for ordinary Kenyans at the county level. Key priorities identified during debate include expanding healthcare services, rehabilitating road networks, widening access to clean water, boosting agricultural support programmes, and strengthening early childhood education — all sectors where counties have struggled to match growing demand with available resources.
The approval also responds to mounting concern from county governors, who have consistently warned that rising operational costs and surging public service demands are stretching their budgets to a breaking point. With Sh13 billion more at their disposal in the coming financial year, counties now have greater fiscal room to sustain essential programmes and address service delivery shortfalls without resorting to painful spending cuts that directly affect residents.
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