President William Ruto signed into law the County Allocation of Revenue Bill, 2025, and the County Public Finance Laws (Amendment) Bill, 2023, raising counties’ equitable share of national revenue to Ksh415 billion from Ksh387.4 billion for the financial year 2025/2026.

The County Allocation of Revenue Bill, sponsored by Senate Finance and Budget Committee chair Ali Roba, details how the Ksh415 billion will be distributed among Kenya’s 47 counties using the revenue-sharing formula approved by Parliament.

Nairobi County will receive the highest share at Ksh21.4 billion, then Nakuru at Ksh14.4 billion, Turkana at Ksh13.8 billion, and Kakamega at Ksh13.6 billion. Taita Taveta, Isiolo, Elgeyo Marakwet, Tharaka Nithi, and Lamu will receive the least allocation at Ksh5.7 billion, Ksh5.6 billion, Ksh5.5 billion, Ksh5.05 billion, and Ksh3.8 billion respectively.

Kiambu will receive Ksh13.07 billion, Kilifi Ksh12.8 billion, Mandera Ksh12.2 billion, Bungoma Ksh11.8 billion, and Kitui Ksh11.5 billion.

The law also mandates the National Treasury to publish quarterly reports on actual transfers to the counties. The county treasuries will then have to account for such receipts and include them in their quarterly and annual financial statements in an effort to enhance disbursement transparency.

The funds will be the first to utilize the fourth revenue-sharing formula under Article 217 of the Constitution, which had been approved by Parliament earlier this year.

It also sets budget ceilings for county executives and assemblies and establishes clear rules for funding functions transferred from counties to the national government, including mandatory quarterly performance reports to the Senate and respective assemblies.

On the other hand, the County Public Finance Laws (Amendment) Bill, sponsored by Senator Kathuri Murungi, introduces sweeping reforms to the Public Finance Management Act, giving county assemblies greater autonomy over their finances. Central to this reform is the creation of a County Assembly Fund in each county to cover administrative costs and finance asset acquisition, including land and buildings.

The new law expands on existing provisions by detailing the fund’s management, revenue sources, and requisition processes. Under the framework, the Clerk of each county assembly will act as the fund’s administrator, ensuring resources are retained for their intended purposes, kept at the Central Bank of Kenya, and disbursed promptly for approved public spending. Unspent funds at year-end will be carried forward.

Funds will mainly come from monies appropriated by the county assembly from the County Revenue Fund, with county treasuries required to release allocations by the 15th of each month for the following month’s use.

President Ruto signed the two bills into law at the Homa Bay State Lodge.