Counties to Receive Additional Sh425.6 Million Under New Funding Law

President William Ruto has signed into law legislation raising additional allocations to county governments by KSh425.6 million, bringing the total to KSh71.09 billion for the 2026/2027 financial year, up from KSh70.67 billion in the current fiscal year.

The County Governments Additional Allocations Act, 2026, is expected to provide additional funding for key sectors, including healthcare, agriculture, climate change resilience, drought management, water and sanitation, among other programmes.

The funds will be sourced from the national government’s share of revenue, statutory entitlements, as well as loans and grants from development partners.

Ruto assented to the legislation at Eldoret State Lodge in Uasin Gishu County, saying the increased funding would strengthen devolution and help county administrations fulfil their constitutional responsibilities.

The additional allocation comes as county governments continue to rely on transfers from the national government to finance public services and development initiatives, particularly in essential sectors that directly affect residents.

Also Read: Nedbank Takeover Attracts 79.9% of NCBA Shares as NSE Suspends Trading

During the same event, Ruto also signed the County Assembly Services (Amendment) Bill, 2023, into law, introducing changes to the management and governance of county assemblies.

The new legislation establishes procedures for removing members of County Assembly Service Boards, as well as suspending or dismissing county assembly clerks.

It also introduces safeguards to protect the rights and benefits of staff serving on secondment, outlining measures intended to strengthen accountability and improve administrative practices within county assemblies.