President William Ruto has signed a new law increasing additional allocations to county governments by KSh425.6 million for the 2026/27 financial year. The funding will raise total additional allocations to KSh71.09 billion, up from KSh70.67 billion in the previous financial year.
The increase follows the enactment of the County Governments Additional Allocations Act, 2026, which outlines additional funding sources for devolved units.
Under the new law, counties will receive KSh12.73 billion from the national government’s share of revenue. A further KSh56.38 billion will come from loans and grants provided by development partners.
The allocations will also include funds from court fines and mineral royalties, although the statement does not specify the amounts expected from these sources.
County governments are expected to use the additional funding to support key public services and development programmes. These include healthcare, agricultural value chains, climate resilience, drought response, natural resource management, and water and sanitation projects.
The funding is intended to support county-level programmes across these sectors, while enabling devolved governments to address local development needs.
The law also introduces a reporting requirement to strengthen accountability in the transfer of funds to counties. It requires quarterly reports on the actual amounts transferred to county governments.
The additional allocations will therefore increase the funding available to counties in the 2026/27 financial year, while the reporting requirement provides a mechanism for tracking the transfers made to devolved units.