Kenya's Ruto signs revenue-sharing law as new taxes take effect
Kenyan President William Ruto has signed the Division of Revenue Bill into law, increasing the funds allocated to the country's counties, as a raft of new tax measures comes into force.
The law allocates 428 billion shillings to counties for the 2026/27 financial year, up from 415 billion the previous year, in a move the government says is aimed at strengthening devolution and improving local service delivery.
The changes coincide with the start of a new financial year and the coming into effect of the Finance Act 2026, which introduces significant tax changes from 1 July. The measures affect areas including digital payments, the taxation of non-residents and procedures for rental income tax.
Ruto has also been representing Kenya on the international stage, travelling to France for a G7 summit where he was expected to advance African priorities before the world's leading economies. Kenya and France signed a series of agreements aimed at deepening cooperation across strategic sectors.
Tax policy remains politically sensitive in Kenya, where anger over a previous finance bill sparked the deadly Gen Z-led protests of 2024. The government has sought to balance the need to raise revenue and fund devolution against public frustration over the cost of living.
