The National Assembly previously approved a Sh380 billion revenue share through the Division of Revenue Bill 2024.
President William Ruto has signed a law raising counties’ additional funding to KSh71.09 billion for the 2026/2027 financial year.
County additional allocations will increase by KSh425.6 million in the 2026/2027 financial year under a new law. President William Ruto has assented to the County Governments Additional Allocations Act, 2026, enabling the increase.
The law sets total additional funding at KSh71.09 billion, compared with KSh70.67 billion in the previous financial year. These allocations will support county programmes across health, agriculture, climate resilience and other services.
Funding for county additional allocations
The funding package includes KSh12.73 billion from the National Government’s share of revenue. Meanwhile, loans and grants from development partners account for KSh56.38 billion.
The package also includes allocations from court fines and mineral royalties. Together, these funding streams form the additional allocations available to county governments under the Act.
Health, agriculture and climate programmes
Counties will use the funds to support healthcare services and agricultural value chain development. The allocations will also support climate change resilience and drought response programmes.
In addition, the funding covers natural resource management, alongside water and sanitation programmes. The Act therefore provides support across several areas of county service delivery.
Quarterly reporting on transfers
Alongside the funding provisions, the legislation requires quarterly reports on actual transfers to county governments. This requirement aims to improve accountability and oversight of the funds.
The reporting obligation focuses on money transferred to counties, rather than allocation figures alone.
