President William Ruto on Wednesday signed into law the County Allocation of Revenue Bill, 2025, and the County Public Finance Laws (Amendment) Bill, 2023, marking a significant boost to county assemblies’ financial independence and transparency in revenue distribution.
The Public Finance Laws (Amendment) Bill, sponsored by Meru Senator Kathuri Murungi, amends the Public Finance Management Act to formally establish a County Assembly Fund in each county. The fund will cover administrative costs and asset purchases, with the county assembly clerk serving as administrator.
Funds will be held at the Central Bank of Kenya, retained for their intended purposes, and any unspent balances carried forward to the next financial year.
Under the new provisions, county treasuries must release allocations by the 15th of each month for the following month’s expenditure, subject to assembly approval. Proponents say the change will grant assemblies greater autonomy to execute their constitutional and statutory functions.
The County Allocation of Revenue Bill, 2025, sponsored by Senate Finance and Budget Committee chair Ali Roba, sets the equitable share for counties at Ksh.415 billion for the 2025/26 fiscal year, a 7.1% increase from Ksh.387.4 billion in 2023/24.
It is the first allocation under the fourth revenue-sharing formula approved by Parliament earlier this year.
The law requires the National Treasury to publish monthly transfer reports, with county treasuries reflecting the receipts in quarterly and annual statements to enhance transparency.
It also sets budget ceilings for county executives and assemblies, and prescribes funding rules for functions reverted to the national government, alongside quarterly performance reports to the Senate and county assemblies.
President Ruto assented to the bills at the Homa Bay State Lodge.
Written By Rodney Mbua
