President William Ruto has signed into law the County Allocation of Revenue Bill, 2025 and the County Public Finance Laws (Amendment) Bill, 2023.
This significantly increases the equitable share of national revenue to counties from Sh387.4 billion to Sh415 billion for the 2025/2026 financial year.
The signing ceremony took place at the State Lodge in Homa Bay County, where the Head of State emphasised his administration's commitment to strengthening devolution and improving grassroots service delivery.
“We have increased the equitable share of revenue to Sh415 billion among our 47 counties, representing a rise of almost Sh30 billion from the previous financial year’s Sh387.4 billion,” Ruto announced in a statement posted on X.
The County Allocation of Revenue Bill, 2025, sponsored by the Senate Finance and Budget Committee, outlines how the Sh415 billion will be distributed among Kenya’s 47 counties based on the revenue-sharing formula approved by Parliament.
Nairobi County is set to receive the highest allocation at Sh21.4 billion, followed by Nakuru (Sh14.4 billion), Turkana (Sh13.8 billion), and Kakamega (Sh13.6 billion).
Nakuru County will receive Sh14.4 billion, the second highest, while Turkana and Kakamega have been allocated Sh13.8 billion and Sh13.6 billion respectively.
At the bottom of the table is Taita Taveta, Isiolo, Elgeyo Marakwet, Tharaka Nithi and Lamu counties, which will get Sh5.7 billion, Sh5.6 billion, Sh5.5 billion, Sh5.05 billion and Sh3.8 billion respectively.
Kiambu will receive Sh13.07 billion, Kilifi (Sh12.8 billion), Mandera (Sh12.2 billion), Bungoma ( Sh11.8 billion) and Kitui County (Sh11.5 billion).
The County Public Finance Laws (Amendment) Bill, 2023, sponsored by Senator Kathuri Murungi, introduces key amendments to the Public Finance Management Act, notably establishing a County Assembly Fund in each of the 47 counties.
This fund is expected to enhance the financial independence of county assemblies and improve the legislative oversight function at the devolved level.
Senate Finance Committee Chairperson Ali Roba noted that the revenue-sharing formula has been applied in full accordance with Article 217 of the Constitution, ensuring equity and transparency in the allocation process.
