President William Ruto has signed new laws that will see a significant increase in funding for counties.
- •The County Allocation of Revenue Bill, 2025, sets the equitable share of revenue for the 47 counties at KSh 415 billion, an increase of nearly KSh 30 billion from last year’s allocation of KSh 387.425 billion.
- •Since devolution began, the national government has transferred a total of KSh 4 trillion to counties.
- •The new laws aim to clarify the respective responsibilities of the national and county governments and strengthen the principle of horizontal revenue sharing.
“This is not just more money; it is a stronger foundation for counties to deliver, develop, and transform lives,” Ruto said during the ongoing Devolution Conference in Homabay County. The president also announced the formal gazettement of all 14 devolved functions and the transfer of immovable assets to the counties, a move he said eliminates “decades-old ambiguities.”
According to Ruto, the KSh 30bn increase, along with the signing of the County Public Finance Laws (Amendment) Bill, 2023, is a “statement of intent” to empower counties with the means and mandate to serve Kenyans effectively. The increase marks the first allocation to apply the new revenue-sharing formula approved by Parliament this year.
In a push for greater efficiency and accountability, Ruto urged counties to embrace technology, particularly the eCitizen platform, to curb waste and corruption. He cited examples of counties that have seen significant revenue growth after integrating their services with the digital platform, demonstrating that digitization is a powerful tool for both convenience and economic opportunity.