NAIROBI, Kenya, Dec 4 – Counties are set to receive an additional Sh2 billion after President William Ruto signed the Division of Revenue (Amendment) Bill, 2024, into law.
The new law allocates Sh387 billion to devolved units as their equitable share for the 2024/2025 fiscal year, up from Sh385 billion in the previous financial year.
The amendment follows the withdrawal of the Finance Bill, 2024, which had initially proposed Sh400 billion for counties. Subsequent adjustments reduced the allocation to Sh380 billion after scrapping several tax proposals.
The Division of Revenue Act, 2024, was approved by the National Assembly but underwent amendments in the Senate. Disagreements between the two Houses led to the formation of a bicameral committee, which resolved the final allocation.
“Despite the revenue shortfall, the amount going to counties rose by KSh2 billion from the KSh385 billion allocated in 2023/2024,” read a statement from State House. “This allocation is well above the 15 percent constitutional minimum requirement. The Act also allocates KSh2.2 trillion to the National Government.”
President Ruto also signed two additional bills into law at State House to enhance resource allocation and streamline service delivery at both the national and county levels.
“The National Rating Act, 2024, creates a standard framework for valuation and rating, and lays clear guidelines on how counties should assess property value and charge rates, among others.”
“The Water (Amendment) Act, 2024, provides for public-private partnerships in financing the development of water works by National Government agencies.”
