Cabinet approves Bill to speed up county funding in public finance reform
The Bill introduces a major reform to the county budget process by splitting the County Governments’ Additional Allocations Bill into two separate laws.
The Cabinet has approved the Public Finance Management (Amendment) Bill, 2025, a move aimed at accelerating the flow of funds to county governments and reinforcing devolution through more efficient and predictable financial transfers.
According to the Cabinet, the Bill introduces a major reform to the county budget process by splitting the County Governments’ Additional Allocations Bill into two separate laws.
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Under the proposed framework, Parliament will consider one Bill covering allocations from the National Government’s share of revenue, and another focusing on allocations funded through loans and grants from development partners.
"To further strengthen devolution and improve service delivery, Cabinet approved the Public Finance Management (Amendment) Bill, 2025, which proposes to split the County Governments Additional Allocations Bill into two separate laws to speed up the disbursement of funds to county governments," reads the statement.
"The amendment seeks to resolve delays in enacting the annual Additional Allocations Act, which has, in the past, disrupted service delivery and slowed development at the county level."
For years, delays in enacting the annual Additional Allocations Act have disrupted essential services and slowed local development projects, including healthcare, infrastructure, and housing initiatives.
The cabinet says the reform provides a more predictable and efficient framework for financial transfers, helping counties plan and implement priority programmes effectively.
"This change is expected to enhance efficiency in public finance management, improve service delivery, and strengthen devolution by ensuring timely transfers to county governments," it said.
The reform also aligns with the government’s broader agenda to enhance public finance management, improve coordination between national and county treasuries, and promote accountability in the use of public resources.
By separating the two funding streams, the government hopes to reduce bureaucratic delays and improve the absorption of both domestic and donor-funded resources.
Sponsored by Majority Leader Kimani Ichung’wah, the Bill is currently before the National Assembly and proposes the repeal of sections 191 (a), (b), (c), (d), and (e) of the principal Act.
In addition to strengthening service delivery, the reform is expected to deepen intergovernmental fiscal relations and foster collaboration between county administrations and the National Treasury.
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