President William Ruto has signed into law two significant pieces of legislation aimed at strengthening county governance and fiscal management the County Allocation of Revenue Bill, 2025, and the County Public Finance Laws (Amendment) Bill, 2023. The signing took place on Wednesday at the Homa Bay State Lodge.
The County Allocation of Revenue Bill, 2025, sets the stage for the disbursement of funds to the 47 counties for the 2025/26 financial year. This will be the first time allocations are made under the fourth revenue-sharing formula provided for in Article 217 of the Constitution, which Parliament approved earlier this year. The formula is intended to promote equitable resource distribution based on factors such as population, poverty levels, and fiscal responsibility.
Meanwhile, the County Public Finance Laws (Amendment) Bill, 2023 sponsored by Meru Senator Kathuri Murungi marks a major step toward enhancing county assemblies’ financial independence. The law amends the Public Finance Management Act to establish a County Assembly Fund in each county. This fund will cover administrative expenses and facilitate the acquisition of assets such as land and buildings, reducing assemblies’ reliance on county executives for operational funding.
Additionally, the new legislation introduces budget ceilings for both county executives and assemblies, seeking to curb excessive spending and ensure funds are directed toward service delivery. It also outlines clear rules for financing functions that may be transferred from county governments back to the national government, with an emphasis on accountability.
Under the new framework, county governments will be required to submit quarterly performance reports to the Senate and their respective assemblies. These reports are expected to improve oversight and transparency in the use of public funds.
Speaking at the signing ceremony, President Ruto underscored his administration’s commitment to strengthening devolution. He said the laws would empower counties to manage resources more effectively, foster accountability, and deliver better services to citizens.
The enactment of these laws is seen as a milestone in Kenya’s devolved governance system, potentially reshaping the financial and administrative landscape of county governments across the country.
