Ruto assents to new Bills strengthening county revenue and public finance management
Ruto assented to the County Allocation of Revenue Bill, 2025, and the County Public Finance Laws (Amendment) Bill, 2023, on Wednesday at the Homa Bay State Lodge.
President William Ruto has approved two key laws aimed at enhancing county governance and financial management.
Ruto assented to the County Allocation of Revenue Bill, 2025, and the County Public Finance Laws (Amendment) Bill, 2023, on Wednesday at the Homa Bay State Lodge.
More To Read
- Duncan Ojwang declines Ruto's nomination for KNCHR chair position, vetting suspended
- Murkomen tells Gachagua to record statement over Al-Shabaab claims upon return to Kenya
- Defiant Sifuna attacks Ruto again, accuses him of undermining devolution
- President Ruto distributes business equipment to Nairobi youth groups
- Ruto revives ‘Hustler’ wave with youth empowerment drive ahead of 2027 polls
- Legal experts divided over Ruto’s move to compensate protest victims since 2017
The County Public Finance Laws (Amendment) Bill, sponsored by Meru Senator Kathuri Murungi, is designed to strengthen the financial independence of county assemblies.
It amends the Public Finance Management Act to create a County Assembly Fund in every county. The fund will cover administrative expenses and support the acquisition of assets such as land and buildings.
Although the County Assembly Services Act already provides for such a fund, the new law adds more detailed provisions on how it will be managed, its revenue sources, and procedures for requisitioning funds.
Under the law, the Clerk of each county assembly will serve as the fund’s administrator. Monies will be retained for their intended purpose, held at the Central Bank of Kenya (CBK), and released promptly for approved public spending.
Any unspent funds at the end of the financial year will be carried forward. The main source of the fund will be allocations from the County Revenue Fund, which county treasuries must release by the 15th of each month for the following month’s expenditures, subject to assembly approval.
Supporters of the law say these measures will give county assemblies greater control over finances, allowing them to carry out their constitutional and statutory duties effectively.
The County Allocation of Revenue Bill, 2025, sponsored by Senate Finance and Budget Committee chair Ali Roba, sets out how the national government will distribute revenue to counties in the new financial year.
It allocates Sh415 billion to the 47 counties, a 7.1 per cent increase from the Sh387.4 billion distributed in 2023/24.
The law requires the national Treasury to publish monthly reports on transfers to counties. County treasuries, in turn, must reflect these receipts in their quarterly and annual financial statements to ensure transparency in the use of public funds.
This will be the first revenue allocation under the fourth formula approved by Parliament earlier this year, as stipulated in Article 217 of the Constitution.
The law also sets budget ceilings for county executives and assemblies and outlines rules for funding functions transferred from counties to the national government.
Counties must submit quarterly performance reports to the Senate and their assemblies, reinforcing accountability in public service delivery.
Other Topics To Read
Top Stories Today
