The County Allocation of Revenue Bill (Senate Bill No. 10 of 2026)

<!-- image --> ## REPUBLICOFKENYA ## PARLIAMENT ## SENATEBILLS (Bill No. 10 of 2026) ## THE COUNTY ALLOCATION OF REVENUE BILL, 2026 (A Bill published in the Kenya Gazette Supplement No. 107 of 30th April, 2026 and passed by the Senate, with amendments, on 17th June, 2026.) <!-- image --> ## Clause - 1—-Short title. - 2—Interpretation - 3— Object. - 4—— Equitable allocation of county governments’ share of revenue. - 5—Budget ceilingsforrecurrent expenditure. - 6——Fundingof transferred functions. - 7——Report on actual transfers. - 8—Books of accounts to reflect National Government transfers. - 9-—Financial misconduct. - 10Applicable revenue-sharing formula. FIRSTSCHEDULE: ALLOCATIONOFEACHCOUNTYGOVERNMENT'S EQUITABLE SHARE OF REVENUE RAISED NATIONALLYINTHEFY2026/2027 SECONDSCHEDULE: COUNTY GOVERNMENTBUDGETCEILINGSFOR RECURRENTEXPENDITUREINFY2026/2027 ## THECOUNTYALLOCATIONOFREVENUEBILL,2026 ARRANGEMENTOFCLAUSES Short title. Interpretation. Cap. 428. Object. Equitable allocationof county governments' share of revenue. ## THECOUNTYALLOCATIONOFREVENUEBILL,2026 ## A Bill for - ANACTofParliament toprovidefor theequitable allocation of revenueraisednationally among the countygovernmentsfor the2026/2027financialyear;theresponsibilitiesofnational and county governments pursuant to such allocation; and for connectedpurposes. ENACTEDbytheParliament ofKenya,asfollows 1. This Act may be cited as the County Allocation of Revenue Act, 2026. - 2.InthisAct— "Cabinet Secretary"means theCabinet Secretary responsiblefor mattersrelatingtofinance;and ""revenue" has the meaning assigned to it under section 2 of the CommissiononRevenueAllocationAct. - 3.Theobject ofthis Act isto- - (a)provide,pursuant to Article 218(1)(b) of the Constitution,for the allocationof anequitableshareof revenueraised nationally among the county governments,in accordance with the resolutionapprovedbyParliamentunderArticle217ofthe Constitutionforthefinancialyear2026/27;and - (b)facilitate the transfer of allocationsmade to counties under this ActfromtheConsolidatedFund totherespectiveCounty RevenueFunds. 4. (1) Each county government's equitable share of revenue raised nationally,on the basis of the revenue sharing formula approved by Parliament in accordance with Article 217 of the Constitution',in respect of the financial year 2026/27,shall be as set out in Column F of Cap412A. Budget ceilings forrecurrent expenditure. Funding of transferred functions. Report on actual transfers. theFirstSchedule. (2)Each county government's allocation under subsection (1) shall betransferred to therespective CountyRevenueFund in accordance with a payment schedule approved by the Senate and published in the GazettebytheCabinetSecretaryinaccordancewithsection17ofthe PublicFinanceManagementAct. 5.Thebudgetceilingsforrecurrentexpenditureforcounty governments for the financial year 2026/2027 shall be as set out in the SecondSchedule. 6. (1) Where a county government has transferred a function to the NationalGovernmentpursuant toArticle187of theConstitution,the respective county executive,in consultation with the National Government,shall determine the cost ofthe transferredfunctions. (2)Therespective county assembly shall appropriate suchmonies asmayberequiredfor thetransferredfunctioninaccordancewith the determinationmadeundersubsection(l)and the allocationshall not be less than the amount appropriated by the county assembly in the precedingfinancialyear. (3)The monies appropriatedunder subsection(l)shallbe transferredtotheNationalGovernment. (4)Anationalgovernmententitytowhichacountygovernment functionhasbeentransferredshallsubmitaquarterlyreporttothe Senate and therespectivecounty assembly on the statusofthe discharge ofthedevolvedfunction. (5)The Auditor-General shall,no later than three months after the end of a financial year, prepare a special audit report on the financial andnon-financialperformanceofanentitytowhichacounty government function has been transferred. (6)The Auditor-General shall submit thereport under subsection (5)totheSenateand therespectivecountyassembly. 7.TheCabinetSecretary shall publish amonthlyreport onactual transfersofall allocationstocountygovernments. | Books of accounts toreflectNational Government transfers. | 8.(1) Each county treasury shall reflect all transfers by the national government to the countygovernments in its books of accounts. (2)The estimatesofrevenueofeachcountyshall separatelyreflect thetotalequitablerevenueshareundersection4of thisActtransferred totheCountyRevenueFund. | |-------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Cap. 412A. | (3)Acounty treasuryshall aspart of itsconsolidated quarterly and annual reports required under the Public Finance Management Act report on actual transfers received by the county government from the nationalgovernment,uptotheendof that quarteroryearintheformat prescribed by the Public Sector Accounting Standards Board or in the absenceofaformatprescribed bytheBoard,in theformatprescribed by theNationalTreasury. | | Financial misconduct. | 9.Despite the provisions of any other law, any serious or persistent non-compliancewithprovisionsofthisActconstitutesanoffenceunder | | Cap.412A | thePublicFinanceManagementAct. | | Applicable revenue-sharing formula. | 10.For the avoidance of doubt,the allocation of the equitable share of revenue to county governments under section 4 of this Act shall be in accordancewiththefourthdeterminationofthebasisofthedivisionof 217(7)oftheConstitution. | ## FIRSTSCHEDULE(S.4) | Total Equitable Share | G=C+D+F | 7,308,538,764 | 7,690,203,903 | 12,213,393,358 | 8,204,938,281 | 5,693,287,501 | 6,266,341,359 | 9,208,106,30 8,914,134,592 | | 5,820,428,671 | 9,203,151,126 | 14,065,352,058 | 7,426,240,914 13,509,437,586 | |-----------------------------------------------------------|-----------------|-----------------|-----------------|---------------------------|-----------------|-------------------------|-----------------|------------------------------|---------------|-----------------|-----------------|------------------|--------------------------------| | Ksh.391.885billion(Ksh.36.115billion) EquitableShare | 624,665,541 E | 675,082,148 | | 1,042,719,759 690,002,699 | | 494,888,815 524,777,860 | 917,658,965 | 743,853,792 | 525,254,817 | 858,137,516 | 1,084,848,738 | 687,775,612 | 1,215,740,912 | | Allocation FY2026/27 Index | E | 1.72966 | 1.86926 2.88722 | 1.91057 | 1.37031 | 1.45307 | 2.54094 | 2.05968 | 1.45440 | 2.37612 | 3.00387 | 1.90440 | 3.36630 | | **Affirmative Action Ksh.4.46 billion Allocationof | | | | | 371,666,667 | 371,666,667 | | | 371,666,667 | | | | | | Equitable share | 6,683,873,223 C | 7,015,121,755 | 11,170,673,99 | 7,514,935,582 | 4,826,732,019 | 5,369,896,832 | 8,290,447,365 | 8,170,280,800 | 4,923,507,187 | 8,345,013,610 | 12,980,03,30 | 6,738,465,302 | 12,293,696,674 | | *BaselineAllocationof Ksh.387.425billion Allocation Ratio | 1.72520 B | 1.81070 | 2.88331 | 1.93971 | 1.24585 | 1.38605 | 2.13988 | 2.10887 | 1.27083 | 2.15397 | 3.35046 | 1.73930 | 3.17318 | | Total Equitable FY2025/26 Share | 7,083,683,384 A | 7,447,200,499 | 11,838,054,666 | 7,956,564,058 | 5,515,146,712 | 6,077,441,672 | 8,877,784,676 | 8,646,376,063 | 5,631,357,298 | 8,894,254,886 | 13,674,848,566 | 7,178,668,356 | 13,071,817,986 | | County | Baringo | Bomet | Bungoma | Busia | Elgeyo/Marakwet | Embu | Garissa | HomaBay | Isiolo | Kajiado | Kakamega | Kericho | Kiambu | | | | 2 | 3 | | 5 | 9 | | | | 10 | 1 | 12 | 13 | | Total Equitable Share | 13,175,334,595 G=C+D+F | 6,337,662,004 | 10,108,734,057 | 9,181,372,763 | 11,851,440,460 | 9,333,631,268 | 6,298,325,916 | 3,987,831,441 | 10,506,401,278 | 9,245,743,223 | 12,588,136,749 | 8,391,662,265 | 10,896,791,506 | 9,164,503,127 | 8,655,427,079 | |--------------------------------------------------------|--------------------------|-----------------|------------------|-----------------|------------------|-----------------|-----------------|-----------------|------------------|-----------------|------------------|-------------------------|------------------|-----------------|-----------------| | Ksh.391.885billion(Ksh.36.115billion） Equitable Share | 1,005,491,119 | 516,722,618 | 802,898,369 | 776,044,190 | 965,472,361 | 708,219,665 | 539,624,517 | 361,734,051 | 909,177,338 | 748,434,951 | 897,518,189 | 794,511,071 952,451,026 | 779,426,728 | | 755,753,041 | | Allocation E Index | 2.78414 | 1.43077 | 2.22317 | 2.14881 | 2.67333 | 1.96101 | 1.49418 | 1.00162 | 2.51745 | 2.07237 | 2.48517 | 2.19995 | 2.63727 | 2.15818 | 2.09263 | | **AffirmativeAction Ksh.4.46billion Allocationof | D | 371,666,667 | | | | | 371,666,667 | 371,666,667 | | | | | | | | | Equitable share *BaselineAllocationof | 12,169,843,476 C | 5,449,272,719 | 9,305,835,688 | 8,405,328,573 | 10,885,968,099 | 8,625,411,603 | 5,387,034,732 | 3,254,430,723 | 9,597,223,940 | 8,497,308,272 | 11,690,618,560 | 7,597,151,194 | 9,944,340,480 | 8,385,076,399 | 7,899,674,038 | | Ksh.387.425billion AllocationRatio | 3.14121 B | 1.40654 | 2.40197 | 2.16954 | 2.80983 | 2.22634 | 1.39047 | 0.84002 | 2.47718 | 2.19328 | 3.01752 | 1.96093 2.56678 | | 2.16431 | 2.03902 | | Total Equitable FY2025/26 Share | 12,813,396,770 A | 6,151,661,892 | 9,819,721,768 | 8,902,026,938 | 11,503,907,837 | 9,078,699,643 | 6,104,082,008 | 3,857,621,205 | 10,179,132,681 | 8,976,335,654 | 12,265,064,993 | 8,105,669,078 | 10,553,946,059 | 8,883,939,719 | 8,383,385,281 | | County | Kilifi | Kirinyaga | Kisii | Kisumu | Kitui | Kwale | Laikipia | Lamu | Machakos | Makueni | Mandera | Marsabit | Meru | | Mombasa | | | | 15 | | 7 | 18 | 19 | 2 | 以 | 12 | 23 | | 125 | | 12 | 28 | 6 | Total Equitable Share | | 8,226,820,359 G=C+D+F | 22,113,620,446 | 14,898,407,452 | 8,011,197,944 | 10,067,523,987 | 6,265,653,089 | 6,862,041,197 | 7,108,453,869 | 6,529,355,285 | 8,009,251,583 | 5,941,906,759 | 7,446,174,779 | 5,219,759,236 | 8,244,551,895 | 14,274,615,989 | |-----------------------------------------------------------------------------------------------------------------|---------|-------------------------|------------------|------------------|-----------------|------------------|-----------------|-----------------|-----------------|-----------------|-----------------|-----------------|-----------------|-----------------|-----------------|------------------| | Ksh.391.885billion (Ksh.36.115 billion) ***Additional equitable share above EquitableShare Allocation FY2026/27 | | 714,953,328 | 1,934,908,489 | 1,231,409,806 | 665,126,837 | 825,663,468 | 533,998,429 | 553,852,878 | 589,844,614 | 534,460,109 | 707,778,152 | 504,101,710 | 621,455,945 | 448,584,257 | 704,050,973 | 1,061,332,669 | | Ksh.391.885billion (Ksh.36.115 billion) ***Additional equitable share above EquitableShare Allocation FY2026/27 | E Index | 1.97966 | 5.35763 | 3.40969 | 1.84169 | 2.28621 | 1.47861 | 1.53358 | 1.63324 | 1.47988 | 1.95979 | 1.39582 | 1.72077 | 1.24210 | 1.94947 | 2.93876 | | **Affirmative Action Ksh.4.46 billion Allocationof Equitable share | | | | | | | 371,666,667 | 371,666,667 | | 371,666,667 | | 371,666,667 | | 371,666,667 | | | | *BaselineAllocationof Ksh.387.425billion AllocationRatio | | 7,511,867,031 | 20,178,711,957 | 13,666,997,646 | 7,346,071,107 | 9,241,860,519 | 5,359,987,994 | 5,936,521,652 | 6,518,609,255 | 5,623,228,509 | 7,301,473,431 | 5,066,138,383 | 6,824,718,834 | 4,399,508,312 | 7,540,500,922 | 13,213,283,320 | | *BaselineAllocationof Ksh.387.425billion AllocationRatio | B | 1.93892 | 5.20842 | 3.52765 | 1.89613 | 2.38546 | 1.38349 | 1.53230 | 1.68255 | 1.45144 | 1.88462 | 1.30764 | 1.76156 | 1.13558 | 1.94631 | 3.41054 | | TotalEquitable FY2025/26 Share | A | 7,969,464,876 | 21,417,128,397 | 14,455,147,658 | 7,771,778,066 | 9,770,317,146 | 6,073,434,356 | 6,662,675,631 | 6,896,132,673 | 6,336,970,364 | 7,754,478,885 | 5,760,449,685 | 7,222,474,730 | 5,058,286,293 | 7,991,120,837 | 13,892,577,371 | | County | | Murang'a | Nairobi City | Nakuru | Nandi | Narok | Nyamira | Nyandarua | Nyeri | Samburu | Siaya | Taita/Taveta | TanaRiver | Tharaka-Nithi | TransNzoia | Turkana | | | | 129 | 13 | 3 | 3 | 3 | | 5 | 36 | 3 | 3 | 3 | 4 | 4 | | 3 | 7 The County Allocation of RevenueBill,2026 | Total Equitable Share | 9,260,813,408 G=C+D+F | 6,202,310,291 | 10,847,713,122 | 7,223,277,137 | 428,000,000,000 | |-----------------------------------------------------------------------------------------|-------------------------|-----------------|------------------|-----------------|-------------------| | Ksh.391.885billion(Ksh.36.115billion) ***Additional equitableshareabove Equitable Share | 788,414,447 F | 537,721,976 | 944,914,081 | 613,541,423 | 36,115,000,000 | | Allocation FY2026/27 Index | 2.18307 E | 1.48892 | 2.61640 | 1.69885 | 100.00000 | | **Affirmative Action Ksh.4.46 billion Allocationof | D | 371,666,667 | | | 4,460,000,000 | | Equitable share | 8,472,398,961 C | 5,292,921,648 | 9,902,799,041 | 6,609,735,714 | 387,425,000,000 | | *BaselineAllocationof Ksh.387.425billion AllocationRatio | 2.18685 B | 1.36618 | 2.55606 | 1.70607 | 100.00000 | | Total Equitable FY2025/26 Share | 8,977,014,770 A | 6,008,751,224 | 10,507,580,683 | 7,002,426,008 | 415,000,000,000 | | County | Uasin Gishu | Vihiga | Wajir | WestPokot | Total | | | 4 | 5 | 46 | 4 | | *The Baseline Allocation Ratio- This ratio is derived from each county's allocation for FY 2024/25 totalling to Ksh.387.425 billion. 12 counties shall each receive an additional amount of Ksh.371.7 million. parameters of the approved Fourth basis for allocating the Share of National Revenue among the county governments- [(0.45*Population Index) + (0.35*Equal x r ) (x ) (x ) ## SECONDSCHEDULE(S.5) | County Government Budget Ceilings for Recurrent Expenditure in FY 2026/27(Figures inKenya | County Government Budget Ceilings for Recurrent Expenditure in FY 2026/27(Figures inKenya | County Government Budget Ceilings for Recurrent Expenditure in FY 2026/27(Figures inKenya | County Government Budget Ceilings for Recurrent Expenditure in FY 2026/27(Figures inKenya | County Government Budget Ceilings for Recurrent Expenditure in FY 2026/27(Figures inKenya | County Government Budget Ceilings for Recurrent Expenditure in FY 2026/27(Figures inKenya | |---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------| | | | Shillings) CountyAssemblies | Shillings) CountyAssemblies | CountyExecutives | CountyExecutives | | SN | County | FY 2025/26 | FY2026/27 | FY2025/26 | FY 2026/27 | | 1 | Baringo | 847,469,122 | 847,626,854 | 496,161,163 | 528,170,814 | | 2 | Bomet | 755,816,719 | 731,537,286 | 468,730,626 | 498,289,418 | | 3 | Bungoma | 1,074,221,694 | 976,506,613 | 562,059,982 | 601,422,211 | | 4 | Busia | 859,603,045 | 869,947,142 | 514,728,802 | 549,189,312 | | 5 | Elgeyo/Marakwet | 682,127,598 | 684,431,351 | 445,655,740 | 472,763,673 | | 6 | Embu | 653,997,909 | 651,091,348 | 445,585,855 | 472,693,787 | | 7 | Garissa | 1,010,212,868 | 1,083,206,383 | 510,888,235 | 544,919,368 | | 8 | HomaBay | 901,349,007 | 913,968,214 | 538,863,664 | 575,775,034 | | 9 | Isiolo | 571,957,767 | 515,234,218 | 376,492,992 | 398,239,140 | | 10 | Kajiado | 797,493,878 | 833,655,216 | 459,200,063 | 488,452,144 | | 11 | Kakamega | 1,440,150,864 | 1,410,784,461 | 631,900,264 | 678,615,072 | | 12 | Kericho | 801,439,308 | 808,829,560 | 491,924,215 | 523,933,866 | | 13 | Kiambu | 1,332,680,576 | 1,325,843,597 | 642,094,266 | 688,809,074 | | 14 | Kilifi | 871,651,828 | 867,147,393 | 528,153,096 | 562,613,607 | | 15 | Kirinyaga | 667,134,062 | 666,664,869 | 436,378,706 | 463,333,283 | | 16 | Kisii | 1,051,143,180 | 1,061,001,255 | 569,351,784 | 608,714,014 | | 17 | Kisumu | 993,261,872 | 899,826,065 | 522,102,171 | 638,237,442 | | 18 | Kitui | 1,025,218,850 | 1,037,669,946 | 556,906,939 | 593,818,310 | | 19 | Kwale | 667,152,528 | 675,305,556 | 447,387,205 | 474,495,138 | | 20 | Laikipia | 511,501,08 | 600,630,878 | 406,459,778 | 430,810,140 | | 21 | Lamu | 502,735,064 | 479,609,506 | 373,334,857 | 395,081,004 | | 22 | Machakos | 957,194,136 | 970,874,933 | 540,775,483 | 577,686,853 | | 23 | Makueni | 964,631,315 | 847,824,561 | 494,768,774 | 526,778,425 | | 24 | Mandera | 917,936,058 | 974,349,992 | 511,948,091 | 543,957,742 | | 25 | Marsabit | 741,494,088 | 859,562,104 | 458,101,332 | 490,972,864 | | 26 | Meru | 1,033,230,263 | 1,040,373,863 | 565,023,558 | 604,385,788 | | 27 | Migori | 936,954,113 | 1,059,223,492 | 538,507,125 | 575,418,495 | | 28 | Mombasa | 862,807,953 | 736,274,590 | 497,268,190 | 529,277,841 | | 29 | Murang'a | 813,710,947 | 851,528,548 | 515,207,988 | 549,668,499 | | 30 | Nairobi City | 1,603,909,510 | 1,775,901,135 | 775,756,999 | 834,726,105 | | 31 | Nakuru | 1,121,659,233 | 1,139,437,714 | 622,626,699 | 666,890,648 | | 32 | Nandi | 811,140,379 | 797,267,097 | 492,132,433 | 524,142,084 | | 33 | Narok | 878,624,509 | 927,319,735 | 499,621,001 | 531,630,652 | | 34 | Nyamira | 689,414,409 | 698,351,387 | 444,949,706 | 472,057,639 | | 35 | Nyandarua | 758,345,693 | 785,219,049 | 469,042,680 | 498,601,472 | | 36 | Nyeri | 760,288,009 | 763,643,931 | 492,365,209 | 524,374,860 | | 37 | Samburu | 569,616,860 | 605,962,163 | 400,557,424 | 633,218,705 | | 38 | Siaya | 759,893,500 | 770,412,462 | 491,970,700 | 523,980,352 | TheCountyAllocationofRevenueBill,2026 | County Government Budget Ceilings forRecurrent Expenditure inFY 2026/27(Figures inKenya Shillings) | County Government Budget Ceilings forRecurrent Expenditure inFY 2026/27(Figures inKenya Shillings) | County Government Budget Ceilings forRecurrent Expenditure inFY 2026/27(Figures inKenya Shillings) | County Government Budget Ceilings forRecurrent Expenditure inFY 2026/27(Figures inKenya Shillings) | County Government Budget Ceilings forRecurrent Expenditure inFY 2026/27(Figures inKenya Shillings) | County Government Budget Ceilings forRecurrent Expenditure inFY 2026/27(Figures inKenya Shillings) | |------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------| | | | CountyAssemblies | CountyAssemblies | CountyExecutives | CountyExecutives | | SN | County | FY 2025/26 | FY 2026/27 | FY2025/26 | FY 2026/27 | | 39 | Taita/Taveta | 706,797,720 | 724,468,044 | 450,325,811 | 477,433,743 | | 40 | Tana-River | 710,218,891 | 612,807,695 | 422,272,274 | 446,775,992 | | 41 | Tharaka-Nithi | 508,533,605 | 513,863,636 | 404,731,372 | 429,081,734 | | 42 | Trans Nzoia | 664,759,854 | 663,677,259 | 474,454,626 | 504,013,417 | | 43 | Turkana | 863,842,883 | 946,217,760 | 510,888,235 | 551,543,287 | | 44 | Uasin Gishu | 887,273,308 | 852,346,325 | 498,842,007 | 530,851,658 | | 45 | Vihiga | 703,918,304 | 704,103,951 | 467,917,374 | 497,476,165 | | 46 | Wajir | 992,853,943 | 937,865,189 | 502,524,835 | 542,527,721 | | 47 | WestPokot | 699,024,354 | 711,194,510 | 447,670,353 | 474,778,286 | | | Total | 39,936.392,658 | 40,210,588,835 | 23,414,610,682 | 25,250,626,877 | I certifythatthisprinted impression is a truecopyof theBill aspassedbytheSenate on Wednesday,17thJune,2026. For: P ClerkoftheSenate <!-- image --> EndorsedforpresentationtotheNationalAssemblyinaccordancewiththeprovisionsof standingorder16l(1)oftheSenateStandingOrders. SpeakeroftheSenate <!-- image --> ## PRINTEDBYTHECLERKOFTHESENATE