Ruto Unlocks Record Sh428 Billion for Kenya's Counties, Nairobi First in Line

Kenya's devolved governments are set for their largest-ever windfall after President William Ruto signed the County Allocation of Revenue Act, 2026, unlocking a record Sh428 billion for the country's 47 counties — an increase of Sh13 billion on the previous year.

Nairobi emerged as the biggest single beneficiary, taking the largest slice of the pot, with counties such as Nakuru also among the top recipients. The allocation channels national revenue to the county governments that, under Kenya's devolved system, deliver much of the country's health care, local infrastructure and agricultural support.

The move lands amid a sharper debate over the health of the Kenyan economy. Growth slowed to 4.6 percent in 2025, a second consecutive year of deceleration from 4.7 percent in 2024 and 5.7 percent in 2023, and the president has been defending his administration's record against critics who say the gains are not reaching ordinary households.

Directing more money to the counties is, in part, an answer to that criticism — a bet that pushing resources closer to citizens will translate into services people can see. Ruto has also pointed to flagship programmes such as the Affordable Housing initiative, which he says has created hundreds of thousands of jobs on the way to a target of one million.

Whether the record county allocation delivers better outcomes will depend on how transparently and effectively local governments spend it. Devolution was designed to bring government closer to Kenyans; this year's larger cheque raises both the stakes and the expectations attached to it.