President William Ruto has signed into law the County Allocation of Revenue Bill, 2025, and the County Public Finance Laws (Amendment) Bill, 2023.
The County Public Finance Laws (Amendment) Bill, sponsored by Meru Senator Kathuri Murungi, gives county assemblies greater control over their own finances. It changes the Public Finance Management Act to create a County Assembly Fund in every county to cover administrative costs and buy assets such as land and buildings.
While a similar fund already existed under the County Assembly Services Act, the new law adds more detailed rules on how it will be managed, where the money will come from, and how it will be used. Each fund will be run by the county assembly clerk, who will ensure the money is kept at the Central Bank of Kenya, used for its intended purpose, and released quickly for approved spending. Any unused funds at the end of the year will be carried forward.
The main source of money for the fund will be allocations from the County Revenue Fund, approved by the county assembly. County treasuries must release these allocations by the 15th of each month for the next month’s expenses. Supporters of the law say it will help assemblies work more effectively and fulfill their constitutional duties.
The County Allocation of Revenue Bill, 2025, sponsored by Senate Finance and Budget Committee chair Ali Roba, outlines how counties will share revenue for the new financial year. The law allocates KSh415 billion among the 47 counties, up from KSh387.4 billion in the previous year — a 7.1 percent increase.
“We have increased the equitable share of revenue to KSh415 billion for our 47 counties, about KSh30 billion more from the previous financial year’s KSh387 billion,” President Ruto said.
“The significant increase in the funds underpins our commitment to mobilising more resources to support devolution and boost service delivery to the people at the grassroots.”
The law also requires the Treasury to publish monthly reports on transfers to counties, while county treasuries must reflect these funds in their financial statements. This is aimed at improving transparency.
This is the first allocation to use the fourth revenue-sharing formula under Article 217 of the Constitution, which Parliament approved earlier this year. The law also sets budget ceilings for county executives and assemblies and introduces rules for funding services moved from counties to the national government, with quarterly performance reports to the Senate and assemblies.
President Ruto signed the two bills into law at the Homa Bay State Lodge.
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