Counties Secure KSh428B Revenue
President Ruto Enacts KSh428 Billion County Revenue Bill Resolving Parliamentary Deadlock
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Key Points
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Senators had pressed for a higher county allocation of **KSh454.7 billion**, while the National Assembly initially proposed **KSh425 billion** before lawmakers agreed on the **KSh428 billion** compromise via a mediation process.
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Government figures cited in the coverage put **total shareable revenue for 2026/27 at about KSh2.9 trillion**, with the **national government receiving approximately KSh2.46 trillion**.
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In his remarks after assenting to the bill, President Ruto said the KSh428 billion figure represents an increase of **KSh13 billion** over 2025/26 and “**accounts for 21 per cent of the most recent audited national revenue**,” adding that it also exceeds the constitutional 15% minimum share.
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Reporting on the negotiations also highlighted that the National Treasury had to balance competing demands, including **rising debt servicing obligations under the Consolidated Fund Services**, while arriving at the final revenue-sharing split.
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The Equalization Fund allocation (KSh10.25 billion) was described as targeting specific infrastructure and service needs—such as **water supply, health facilities, county roads, and electricity connectivity**—with emphasis on **historically underserved arid and semi-arid regions**.
President William Ruto signed the Division of Revenue Bill, 2026, into law on June 15, giving Kenya's 47 county governments KSh428 billion for the 2026/27 financial year. Dawan Africa reported that Ruto called the allocations "carefully structured to safeguard fiscal sustainability while supporting national development priorities."
The KSh428 billion figure is KSh13 billion more than last year's KSh415 billion. It also clears the constitutional floor — the law requires counties to receive at least 15% of nationally raised revenue. Ruto said the amount equals 21% of the most recently audited national revenue, Signs TV reported.
Months of Deadlock Ended by Seven-Session Mediation
The bill had been stuck in Parliament since February. The National Assembly first proposed KSh420 billion. The Senate pushed back hard, passing the bill in May with a higher county share of KSh454.7 billion. That gap sent the bill to a mediation committee, The Eastleigh Voice reported.
The committee, co-chaired by MP Samuel Atandi and Senator Ali Roba, met seven times before settling on KSh428 billion. Atandi said, "We have settled on Sh428 billion. This is a constitutional imperative and Kenyans are going to be happy." Roba called it "a very difficult but cordial engagement," according to Dawan Africa.
KSh428B Is a Compromise — Not Everyone Is Happy
The Council of Governors had asked for KSh534 billion. The Commission on Revenue Allocation recommended KSh458 billion. The final KSh428 billion falls well below both figures. Nairobi Senator Edwin Sifuna rejected the deal outright, accusing the National Assembly of "blackmailing" counties and calling it a "betrayal of devolution," Signs TV reported.
Critics noted the Senate entered talks demanding KSh454.7 billion but ended up only KSh8 billion above the National Assembly's original floor. Meanwhile, total shareable national revenue for 2026/27 is projected at KSh2.9 trillion. The national government takes KSh2.46 trillion of that, according to The Kenya Times.
Equalization Fund Targets Water, Roads, and Health in Marginalized Areas
Beyond the KSh428 billion equitable share, the law sets aside KSh10.25 billion for the Equalization Fund. That money targets historically underserved regions — mainly arid and semi-arid areas like Turkana and Mandera. It will fund water supply, health facilities, county roads, and electricity, The Kenya Times reported.
The total county package is actually larger when you add other funding streams. Including KSh16.6 billion in conditional grants and KSh57.4 billion from development partners, counties stand to receive about KSh502 billion in all, according to The Kenya Times. Nairobi is the biggest single beneficiary, with KSh22.1 billion from the equitable share alone.
Counties Get Funding Protection — But Treasury Tightens Its Grip
One key win for county defenders was the reinstatement of Clause 5. The clause stops the National Treasury from cutting county funds if national revenue collections fall short during the year. Senator Ledama Olekina praised this protection, and 001 FM noted it gives counties greater budget stability.
But the Treasury also announced a new reform called the Treasury Single Account, or TSA. It gives the national government tighter oversight of how counties hold and spend cash. Treasury Cabinet Secretary John Mbadi said the goal is to reduce idle funds sitting in county accounts, Dawan Africa reported. With the bill signed, Parliament must now pass the County Allocation of Revenue Act to set the exact share for each of the 47 counties.
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