Gov't raises county share by nearly Ksh.30B, promises timely disbursement

The government has increased the equitable share of revenue to counties with nearly Ksh.30 billion compared to the last financial year.

President William Ruto said the unprecedented increase from last year’s Ksh.387.4 billion to Ksh.415 billion will go a long way in strengthening devolution.

The President said the County Allocation of Revenue Act, 2025, which he assented to earlier on Wednesday, distributes the equitable share among the 47 counties in strict adherence to the revenue sharing formula set out in Article 217 of the Constitution.

He pointed out that this is the first allocation to apply the Fourth Determination of the Basis for Division of Revenue, which was approved by Parliament this year.

“This is not just more money; it is a stronger foundation for counties to deliver, develop, and transform lives,” he said.

Speaking during the 9th Devolution Conference held in Homa Bay County, President Ruto reaffirmed his administration’s commitment to supporting the devolved units.

He said despite operating within a tight fiscal space, the government has honoured its commitment to timely disbursements, clearing all balances owed to counties for the just-ended financial year.

“This ensures that counties have the fiscal capacity, institutional infrastructure, and human resources necessary to deliver on their expanded mandates effectively,” he said.

The President pointed out that in just 12 years since the inception of devolution, the government has transferred a total of Ksh.4 trillion to counties.

“Every corner of Kenya now has a functional county government closer to the people than ever before,” he said.

The President said the national government has transferred the 14 outstanding devolved functions to counties, aligning them with the requisite funding.

“This milestone has eliminated decades-old ambiguities that hampered service delivery and fuelled inter-governmental disputes,” he said.

He explained that full transfer of devolved functions will empower county governments to design and implement programmes that respond directly to local needs.

The President announced that the national government has gazetted immovable assets, including land and buildings, for transfer to and ownership of the counties.

President Ruto said he had assented to the County Public Finance Laws (Amendment) Bill, 2023, which amends the Public Finance Management Act to provide for the establishment of a County Assembly Fund in each county.

He said the new law consolidates the place of county assemblies while clearly defining the respective responsibilities of both national and county governments.

“It is not just a legal act, it is a statement of intent that counties must have the means, the mandate, and the clarity to serve our people effectively,” he said.

He pointed out that the government is working with counties to build one bankable, high-impact value chain in every county.

“This is about turning local potential into jobs, incomes, and exports," the President explained.

However, the President noted that corruption remains the greatest threat to the full realisation of the gains of devolution.

He urged all stakeholders involved in the fight against the vice to intensify their efforts, stressing that the war against corruption demands collective resolve and sustained action.

He explained that the national government is adopting technology to curb corruption, citing the digitisation of services through the e-Citizen platform.

This has reduced wastage, closed revenue leakages, and boosted collections while making transactions more transparent and accountable, he explained.

“Our greatest challenge is not the inadequacy of resources, but how we utilise what we have,” he said.

The President also called out the Legislature for demanding money from members of the Executive who appear before the Houses for accountability.

"It should not be possible for a committee of Parliament to demand to be paid to write reports or look the other way," he said.

The President also asked the Judiciary not to be a haven for the corrupt, citing practices such as anticipatory bail which, he said, "is a Kenyan invention" and takes the country backwards.

On his part, Council of Governors (CoG) Chair and Wajir Governor Ahmed Abdullahi commended the national government for disbursing county funds on time.

“For the three years that you have been in charge, at least the last shilling was released to the County Revenue Funds account by midnight on 30th June. We don't take that for granted. It was not always the case,” he said.

The CoG boss asked county chiefs to ensure resources are distributed equitably within the counties.

He noted that since the advent of devolution there has been improved service delivery at the grassroots, citing healthcare services.

Homa Bay Governor Gladys Wanga and Senate Speaker Amason Kingi, among others, also spoke.