Kenya President signs law increasing county funding to Sh71.09 billion

President William Ruto has signed the County Governments Additional Allocations Bill, 2026 into law, set to increase funding for Kenyan counties to Sh71.09 billion for the 2026/2027 financial year. This represents an increase of Sh425.6 million compared to the Sh70.67 billion allocated in the 2025/2026 period.

The funding breakdown includes Sh56.38 billion in conditional allocations from development partner loans and grants, Sh12.73 billion from national government revenue shares, Sh1.83 billion in mineral royalties, and Sh148.26 million from court fines. Development partners are expected to provide approximately 79.3 percent of the total additional allocations.

To enhance accountability, the new law mandates the Cabinet Secretary for the National Treasury to publish quarterly reports on actual transfers to county governments. These reports must be released within 30 days of the end of each quarter. The bill, sponsored by Senator Ali Ibrahim Roba, underwent several stages of legislative review in both the Senate and the National Assembly before receiving presidential assent.