President Ruto signs three key Bills to boost development, funding for counties

President William Ruto on Wednesday signed into law three major Bills aimed at improving county financing, property valuation, and water infrastructure development.

They include the Division of Revenue (Amendment) Act, 2024, the Rating Act, 2024, and the Water (Amendment) Act, 2024.

The signing ceremony took place at State House, Nairobi, and was attended by Deputy President Kithure Kindiki, Speakers Moses Wetang'ula (National Assembly) and Amason Kingi (Senate), Cabinet Secretaries Musalia Mudavadi, Alice Wahome and John Mbadi, National Assembly Clerk Samuel Njoroge, Senators Aaron Cheruiyot, Stewart Madzayo and MPs Kimani Ichung'wah and Ndindi Nyoro among others.

The Division of Revenue (Amendment) Act, 2024 allocates Sh387 billion as the equitable share of revenue to counties for the current Financial Year 2024-2025.

This amount represents 24.67 per cent of the most recently audited national revenue, significantly surpassing the constitutional minimum threshold of 15 per cent.

This allocation followed intense deliberations between the National Assembly and the Senate.

Initially, the Finance Bill, 2024, had proposed Sh400 billion, but the figure was revised to Sh380 billion after the proposal was rejected.

The mediation process ultimately settled on Sh387 billion, up by Sh2 billion from the previous year.

National Assembly Majority Leader Kimani Ichung'wah praised the mediation process, highlighting the importance of balancing fiscal responsibility with county development needs.

"We are facing harsh economic realities but have managed to provide a fair share for counties," he said.

The Act also earmarks Sh2.2 trillion for the national government, reinforcing its commitment to equitable distribution of resources.

Property values

The Rating Act, 2024, introduces a standardised framework for counties to assess property values and impose rates. This new law aims to harmonise property tax systems across Kenya, ensuring transparency and fairness while boosting county revenue collection.

"This Act provides counties with the tools to assess property objectively and promote socio-economic development," Ruto noted during the signing.

The Water (Amendment) Act, 2024, seeks to enhance water infrastructure through public-private partnerships.

By enabling private sector investments, the law aims to address water access challenges and improve service provision at both national and county levels.

Key provisions include maintaining centralised management of large-scale water projects and empowering the Water Services Regulatory Board (WASREB) to oversee bulk water purchase agreements.

WASREB's independence in setting national standards for water services without the approval of the Cabinet Secretary was a focal point of the amendments.

President Ruto reiterated his administration's dedication to fostering development through efficient governance.

"These laws will enhance revenue allocation, improve property management, and accelerate infrastructure development in critical sectors such as water," he said.

With these laws in place, counties, according to the President, are expected to benefit from increased funding and streamlined systems, paving the way for enhanced service delivery and economic growth.