President William Ruto assented—on August 13, 2025—to two critical pieces of legislation at Homa Bay State Lodge:
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County Public Finance Laws (Amendment) Bill, 2023
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County Allocation of Revenue Bill, 2025
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1. County Public Finance Laws (Amendment) Bill, 2023
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Sponsored by: Senator Kathuri Murungi (Meru)
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Purpose: Enhances financial autonomy for county assemblies.
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Key Changes:
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Establishes a dedicated County Assembly Fund in each county—handling administrative costs and asset purchases (e.g. land, buildings).
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The Clerk of the county assembly, designated as fund administrator, ensures funds are held centrally (in the Central Bank of Kenya), disbursed promptly for approved uses, and unspent amounts are carried forward to the next financial year.
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Requires county treasuries to release funds by the 15th of each month for the next month’s expenditures, subject to assembly approval.
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he law formalises management procedures for county assembly finances, bolstering their ability to operate independently and transparently.
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. County Allocation of Revenue Bill, 2025
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Sponsored by: Senate Finance & Budget Committee Chair, Ali Roba
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Key Provisions:
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Allocates KSh 415 billion in equitable share to the 47 county governments for the 2025/26 fiscal year—reflecting a 7.1% increase from KSh 387.4 billion allocated in 2023/24.
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Requires the National Treasury to publish monthly reports on actual transfers to counties. Counties must also include and announce such receipts in their quarterly and annual financial statements, enhancing transparency.
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Establishes budget ceilings for both county executives and assemblies.
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Sets out procedures for funding functions transferred between county and national levels, including requirements for quarterly performance reporting to the Senate and participating assemblies.
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This is the first allocation using the Fourth-Generation Revenue Sharing Formula under Article 217 of the Constitution.
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The increase in allocations, combined with transparency and performance provisions, strengthens fiscal predictability and accountability in Kenya’s devolved governance.
- These laws come amid recent reforms in Kenya’s finance and revenue landscape—including passage and assent of the Division of Revenue Bill 2025, allocating Sh 415 billion to counties and Sh 9.6 billion to the Equalisation Fund—along with other fiscal discipline measures.
- The County Allocation of Revenue Bill sits alongside a broader national push for greater financial accountability, balanced resource distribution, and public trust following years of protests generated by tax-related tensions.
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