President William Ruto has signed the County Governments Additional Allocation Bill 2026 into law, paving the way for county governments to receive an additional KSh71.09 billion in the 2026/2027 financial year.
The Head of State assented to the legislation on Monday, October 19, during a ceremony held at Eldoret State Lodge in Uasin Gishu County.
The bill, sponsored by Mandera Senator Ali Roba, outlines the framework for transferring conditional and unconditional funds to county revenue accounts. The allocations will be drawn from the national government’s share of revenue, as well as loans and grants from development partners.
Senate Clerk Jeremiah Nyegenye explained that the legislation provides for two main categories of additional funding: resources from the national government’s share of revenue and allocations sourced from loans and grants provided by donors and development partners.
Under the new law, counties will receive a total of KSh71,091,926,967 in additional funding during the 2026/2027 financial year.
Nyegenye noted that part of the conditional funding from the national government would support the construction of county headquarters.
The allocations will also help meet the costs associated with transitioning county health workers to permanent and pensionable employment terms.
He said the additional resources would support the development of county administrative facilities while helping the government fulfil its commitments to health workers transitioning to more secure employment arrangements.
During the same ceremony, President Ruto also signed the County Assembly Services Amendment Bill into law.
According to Nyegenye, the legislation seeks to address governance challenges affecting the public service within county assemblies.
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The law establishes a procedure for removing members of county public service boards, requiring an inquiry committee to investigate the matter before the County Assembly votes on their removal.
The latest approvals come days after Ruto signed the Tax Laws Amendment Bill 2026 into law.
Introduced in the National Assembly by Kikuyu MP Kimani Ichung’wah, the legislation amends Section 5 of the Value Added Tax (VAT) Act to maintain a reduced VAT rate of eight per cent on petroleum products, down from the standard 16 per cent.
National Assembly Clerk Samuel Njoroge said the measure would remain in force for 90 days, with the possibility of a further 90-day extension if the situation in the Middle East does not improve.
He explained that the reduced tax rate was intended to cushion Kenya’s economy against the potential effects of the ongoing regional crisis.