Kenya’s counties could soon enjoy greater stability in financing their operations under a fresh constitutional amendment that seeks to overhaul the budget-making framework at both the national and county levels.
- •An amendment bill tabled in the Senate in August introduces significant reforms by clarifying that county governments must prepare and adopt their own annual budget and appropriation Bills anchored on the County Allocation of Revenue Act.
- •To shield counties from cash crunches during perennial budget delays, the Bill provides for interim funding.
- •In cases where the Division of Revenue Bill or the County Allocation of Revenue Bill is not assented to on time, Parliament may authorise withdrawals from the Consolidated Fund.
Such withdrawals, however, will be capped at 50%of the approved estimates and restricted to essential services until the revenue laws are in place.
Beyond the fiscal lifeline for counties, the Bill is designed to tidy up overlapping mandates between the Senate and the National Assembly. It clarifies the origination of Bills, redefines the role of each House in appropriation and allocation processes, repeals the contested definition of “money Bills,” and proposes the creation of a County Assembly Fund to directly finance county assemblies.
The Bill, which is sponsored by Senate Majority Leader Aaron Cheruiyot and Minority Leader Stewart Madzayo, was referred to the Standing Committee on Justice, Legal Affairs and Human Rights for review. A public hearing is set for October 6, 2025, at the Busia Agricultural Training Centre (ATC), with written submissions invited until December 5, 2025.
The sponsors argue that the amendments will secure devolution by resolving structural weaknesses that have hindered the smooth working of bicameralism. For investors and county treasuries, the changes could translate into more predictable cash flows, reduced service disruptions, and stronger oversight of devolved funds.
