Governors across Kenya are set to share up to KSh428 billion for the fiscal year starting July, an amount that reflects KSh13 billion uptick from the FY2025/26. 

The allocation will see the share of money received from the government by the counties to 20.9 percent of the most recent audited national revenue. 

That amount is higher than the Constitutionally allowed 15 percent floor but less than the 35 percent which some governors have been seeking from the Treasury.

"The enhanced allocation will strengthen devolution by equipping county governments with the resources they need to fulfil their constitutional mandate and deliver quality services in line with their budgets and development priorities," explained President William Ruto when he signed the County Allocation of Revenue Bill, 2026, at State House, Nairobi.

Under a new revenue law signed by President William Ruto on Monday, a total of KSh387.43 billion will go to cover salaries, budget needs and development projects.

Additionally, counties shouldering a higher burden on account of high population, poverty levels, land size, and income distance will share out KSh36.1 billion equitably.

Another KSh4.46 billion has been set aside under affirmative action financing targeting a dozen marginalised counties such as Turkana and Marsabit.

The latest allocation will see Nairobi get the lions share at KSh22.1 billion followed by Nakuru at KSh14.9 billion, Turkana (KSh14.3 billion, Kakamega (KSh14.1 billion) and Kiambu (KSh13.5 billion).

Treasury Cabinet Secretary John Mbadi is required to publish a formal schedule of transfers from the consolidated fund, giving markets and oversight bodies a clearer window into disbursement timelines, which is a perennial friction point that has strained county operations in prior years.

President Ruto described the enhanced allocation as a "stable baseline" that equips counties to fulfil their constitutional mandates while balancing recurrent ceilings against development outlays. 

"The formula provides a stable baseline allocation while ensuring a fair distribution based on equal share, population, poverty level and geographical size," the President stated.

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