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| President Ruto Assents to The Division of Revenue Bill, 2026/2027 at state house. |
President Ruto Assents to Division of Revenue Bill 2026, Unlocking Funds for Counties
President William Ruto has assented to the Division of Revenue Bill, 2026, marking a significant step in the implementation of Kenya's budget for the financial year.
The signing of the Bill provides a legal framework for the sharing of nationally collected revenue between the national government and county governments, ensuring that both levels of government receive the resources necessary to carry out their constitutional mandates.
The enactment of the law comes at a crucial time as counties prepare to implement development projects and essential public services.
The legislation outlines the allocation of revenue between the two levels of government, providing counties with funding needed to support critical sectors such as healthcare, agriculture, water services, early childhood education, and infrastructure development.
The assent follows extensive discussions between the National Assembly and the Senate regarding the amount of money that should be allocated to county governments.
The two Houses of Parliament held differing views on the equitable share for counties, leading to mediation efforts aimed at reaching a consensus.
After negotiations, lawmakers agreed on a revenue-sharing framework that balances the needs of both the national and county governments while maintaining fiscal sustainability.
The signing of the Bill is expected to bring certainty to county administrations, many of which depend heavily on allocations from the national government to finance their operations and development programs.
County leaders have consistently argued that adequate funding is essential for effective service delivery, particularly in areas where devolved functions directly impact the lives of citizens.
Analysts note that the Division of Revenue Act remains one of the most important pieces of legislation in Kenya’s public finance system because it determines how resources are shared across different levels of government.
The law plays a central role in strengthening devolution by ensuring that counties have access to funds required to address local development priorities and improve service delivery.
The enactment of the Bill also paves the way for the next stages of the budget process, including the allocation of funds among the 47 counties.
This will enable county governments to finalize their budgets and commence implementation of planned projects for the new financial year.
As Kenya continues to advance its devolved system of governance, the successful passage and assent of the Division of Revenue Bill, 2026, is expected to support economic development, enhance public service delivery, and strengthen cooperation between the national and county governments.
The move underscores the government's commitment to ensuring that resources are distributed in a manner that promotes equitable growth and benefits citizens across the country.
President Ruto Assents to Division of Revenue Bill 2026, Unlocking Funds for Counties