President William Ruto on Monday signed the Division of Revenue Bill, 2026 into law at State House Nairobi, marking a key step in Kenya’s budget cycle and setting out how national revenue will be shared between the two levels of government.
The signing clears a critical procedural stage that allows the national government and county administrations to finalise their spending plans for the coming financial year.
The Division of Revenue framework determines how funds collected by the national government are split, a process that often draws close scrutiny from both county leaders and Parliament.
At State House, Mr Ruto assented to the Bill in the presence of senior government officials, signalling the administration’s push to keep the budget process on schedule.
While the presidency did not immediately issue detailed remarks on the implications of the law, the legislation is expected to guide allocations that fund devolved services such as health, agriculture and local infrastructure.
County governments have in past budget cycles pressed for increased allocations, arguing that rising responsibilities require more resources. The national government, meanwhile, has often pointed to fiscal constraints and competing priorities.
The signing comes at a time when Kenya is balancing debt pressures, public spending demands and calls for greater efficiency in the use of public funds.
Once signed into law, the Division of Revenue Act becomes the basis for the County Allocation of Revenue Bill, which distributes funds to the 47 counties.
The budget process will now move into its final stages before implementation at the start of the next financial year.
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