RUTO ALLOCATES KSH415 BILLION TO COUNTY GOVERNMENTS FOR 2025/26

President William Ruto has officially signed into law the County Allocation of Revenue Bill, 2025, and the County Public Finance Laws(Amendment) Bill, 2023, which will see a historic allocation of Ksh415 billion to all 47 county governments in the upcoming financial year. In an announcement on Wednesday, August 13, 2025, Ruto highlighted that this marks an increase of nearly Ksh30 billion from last year’s allocation of Ksh387.4 billion. For the 2025/26 financial year, Ksh415 billion will be distributed to county governments, accounting for 21.6% of the audited national revenue for the 2021/22 financial year.

The funds will be distributed based on the Fourth Basis Formula for Revenue Sharing, which takes into account factors such as population size, land area, poverty levels, and development needs to ensure fairness and address regional inequalities. Notable allocations include Nairobi County, which receives the largest share at Ksh21.4 billion, followed by Nakuru (Ksh14.4 billion), Turkana (Ksh13.89 billion), Kakamega (Ksh13.6 billion), and Kiambu (Ksh13.07 billion). On the other hand, Lamu County receives the smallest allocation at Ksh3.85 billion.

The Bill also establishes a robust legal and financial framework aimed at ensuring transparency and accountability in the usage of these funds. It mandates that all transfers be recorded in county treasuries’ financial statements and deposited into County Revenue Funds according to a payment schedule approved by the Senate. Additionally, the Bill allows for supplementary allocations from national revenue, as well as loans and grants from development partners.