- The County Allocation of Revenue Bill, 2025, sets counties’ share at Ksh 415 billion, a 7.1% rise from last year.
- Public Finance Laws (Amendment) Bill creates a County Assembly Fund for administrative and asset costs.
- County treasuries must release allocations by the 15th of every month.
- Funds to be held at the Central Bank of Kenya, with unspent money carried forward.
President William Ruto has signed two key bills aimed at enhancing county assemblies’ financial independence and ensuring fair revenue distribution. The Public Finance Laws (Amendment) Bill, sponsored by Meru Senator Kathuri Murungi, formally establishes a County Assembly Fund in each county to cater for administrative costs and asset purchases.
The fund will be managed by the county assembly clerk, kept at the Central Bank of Kenya, and retained strictly for its intended purpose. Any unused balances will be rolled over to the next financial year.
Under the new provisions, county treasuries are now required to release allocations by the 15th of each month for the following month’s expenditure. The move is expected to give assemblies more autonomy to perform their constitutional and statutory duties effectively.
The County Allocation of Revenue Bill, 2025, sponsored by Senate Finance and Budget Committee chair Ali Roba, allocates Ksh 415 billion to counties for the 2025/26 fiscal year, up from Ksh 387.4 billion in 2023/24. This is the first allocation under the fourth revenue-sharing formula approved earlier this year.
The law mandates the National Treasury to publish monthly transfer reports, while county treasuries must include receipts in quarterly and annual statements. It also sets budget ceilings for county executives and assemblies, prescribes funding rules for functions reverted to the national government, and requires quarterly performance reports to be submitted to the Senate and county assemblies.
“This legislation ensures counties have predictable resources and strengthens accountability in the use of public funds,” President Ruto said at the Homa Bay State Lodge, where he assented to the bills.
