President William Ruto has signed into law three pivotal bills designed to enhance county financing, streamline property valuation, and boost water infrastructure development across Kenya.
On Wednesday, Ruto assented to the Division of Revenue (Amendment) Bill, 2024, the Rating Bill, 2022, and the Water (Amendment) Bill, 2024.
The Division of Revenue (Amendment) Act, 2024, allocates Sh387 billion as an equitable share of revenue to counties for the 2024/2025 financial year.
This amount represents 24.67% of the most recently audited revenue, surpassing the 15% minimum constitutional requirement.
Originally, the Finance Bill, 2024, proposed Sh400 billion for counties.
However, the figure was revised downward to Sh380 billion after the Bill’s rejection, before the National Assembly and Senate reached a consensus at Sh387 billion.
The Act also allocates Sh2.2 trillion to the National Government, underscoring its financial commitments across various sectors.
The Rating Act, 2024, establishes a standardized framework for property valuation and rating at the county level.
This law aims to provide clear guidelines for assessing property values, imposing rates, and improving transparency in county revenue collection.
By harmonizing valuation and rating systems, the Act seeks to enhance efficiency, reduce disputes, and foster equitable taxation practices across the country.
The Water (Amendment) Act, 2024, paves the way for Public-Private Partnerships (PPPs) in financing the development of water infrastructure by national government agencies.
This legislative change is expected to attract private investment into the water sector, leading to improved access to water services and accelerated infrastructure development in underserved regions.
President Ruto lauded the three laws as transformative tools for governance and development, emphasizing their role in strengthening resource allocation, improving public services, and fostering economic growth.
“These laws will enhance efficiency in revenue allocation, improve property management systems, and accelerate infrastructure development in critical sectors such as water,” he said.
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