President William Ruto has officially signed two important laws that will significantly impact how counties manage and receive money from the national government. The signing took place at the Homa Bay State Lodge on Wednesday, August 13, 2025.
The two laws are, including, County Allocation of Revenue Bill, 2025 and County Public Finance Laws (Amendment) Bill, 2023.
The County Allocation of Revenue Bill, 2025 is sponsored by Senate Finance Committee Chair Ali Roba, outlines how the national government will distribute Ksh.415 billion among the 47 counties in the current financial year. This marks a 7.1% increase from the Ksh.387.4 billion allocated in the 2023/24 fiscal year.
And its major key points in the bill include, this is the first allocation based on the fourth revenue-sharing formula under Article 217 of the Constitution, the National Treasury must publish monthly reports on the money sent to counties, counties must include these figures in their financial reports to improve transparency and accountability, it also sets spending limits (budget ceilings) for both county assemblies and executives, rules have been introduced for funding services that have been transferred back to the national government and counties are now required to submit quarterly performance reports to the Senate and their respective assemblies.
The second bill is County Public Finance Laws (Amendment) Bill, 2023, this amendment, sponsored by Meru Senator Kathuri Murungi, is meant to give county assemblies more control over their own finances.
It makes changes to the Public Finance Management Act by creating a County Assembly Fund in every county.
Main features of the bill include, the fund will be used for administrative costs and buying assets like land and buildings, although the County Assembly Services Act already allowed such a fund, this new law provides clearer rules on how to manage it, the Clerk of the County Assembly will be in charge of the fund, ensuring it is used properly and remains in the Central Bank of Kenya, any money not spent by the end of the financial year will be carried forward and county treasuries must release funds by the 15th of each month for the following month’s spending, but only after the county assembly gives approval.
Supporters of the bill say it will give county assemblies the financial freedom needed to carry out their constitutional duties more effectively.
These laws are a step forward in strengthening devolution in Kenya, ensuring that counties have both the funds and the independence to manage local development. By increasing transparency and requiring regular reporting, the national government aims to promote responsible and efficient use of public funds.
