Ruto Signs Bills Unlocking Sh415 Billion for Counties in 2025/26

President William Ruto has signed into law the County Allocation of Revenue Bill, 2025, and the County Public Finance Laws (Amendment) Bill, 2023, paving the way for the equitable distribution of Sh415 billion to Kenya’s 47 counties in the 2025/26 financial year.

The signing took place at the State Lodge in Homa Bay, marking what the President described as a major milestone in supporting devolution and ensuring counties have the resources needed to deliver essential services.

The County Allocation of Revenue Bill outlines the formula for sharing national revenue among counties, while the County Public Finance Laws (Amendment) Bill introduces a series of reforms aimed at improving fiscal management.

Key provisions include safeguards to protect county budgets from disruptions caused by national revenue shortfalls, as well as measures to streamline financial reporting and enhance oversight at the county level. The government says these changes will help strengthen accountability and efficiency in the use of public funds.

According to Treasury estimates, the Sh415 billion allocation represents one of the largest disbursements to devolved units since the introduction of county governments in 2013. The funds are expected to bolster investments in healthcare, infrastructure, agriculture, and other priority sectors identified in county integrated development plans.

The enactment of the two laws comes at a time when county governments have been pushing for more predictable and timely funding from the national government. Delayed disbursements in past financial years have been blamed for stalled projects and unpaid staff salaries in several devolved units.

By embedding stronger legal protections for county finances, the government hopes to prevent such disruptions and foster smoother delivery of public services.