Counties face stricter budget rules under new Bill
Sponsored through the Senate, the Bill seeks to amend various county public finance laws to align them with the national framework established under the Public Finance Management (PFM) Act, 2012.
A landmark Bill aimed at overhauling county financial management has been passed by the National Assembly, paving the way for tighter regulation of county finances and improved transparency in the use of public resources.
If signed into law by the President, the bill will introduce key reforms to align county budgeting with national standards and strengthen oversight across all devolved units.
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The County Public Finance Laws (Amendment) Bill, Senate Bill No. 39 of 2023, was read a Third Time and passed on Tuesday, July 29, 2025. The Bill sailed through the Committee of the Whole House without any amendments.
Sponsored through the Senate, the Bill seeks to amend various county public finance laws to align them with the national framework established under the Public Finance Management (PFM) Act, 2012. It introduces key reforms aimed at streamlining county budgeting, strengthening oversight by county assemblies, and enhancing accountability at the devolved level.
Among the notable provisions is the requirement for county governments to submit their budgets within strict timelines that are harmonised with national government deadlines. This aims to prevent delays in service delivery. Counties will also be required to involve residents and stakeholders more meaningfully in the budget-making process through public forums and disclosures.
To ensure consistency and improve auditing, the Bill mandates that counties prepare and submit financial statements in formats prescribed by the National Treasury. This will promote standardised financial reporting and easier oversight.
Additionally, County Assemblies will now exercise greater oversight authority, including the submission of mandatory reports on budget implementation and quarterly expenditure reviews by county executives.
Leader of the Majority Party and Kikuyu MP Kimani Ichung’wah, who moved the Motion for the Third Reading, described the bill as a necessary step toward instilling fiscal discipline in county governments.
“The Bill provides for better coordination between the county and national governments on matters of public finance, while also ensuring that citizens can hold their county leaders accountable,” said Ichung’wah.
Murang’a Woman Representative Betty Njeri Maina, who seconded the Motion, said the amendments would reduce wasteful spending and help combat corruption in counties.
Linet Chepkorir Toto, the Woman Representative for Bomet, added that clearer timelines and streamlined procedures would enable counties to plan and implement development projects more efficiently.
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