HOMABAY, Kenya, August 14th – President William Ruto has announced a record increase in the equitable revenue share to counties, signalling a renewed commitment by the National Government to bolster devolution.
Speaking at the 9th Devolution Conference in Homa Bay County, Dr Ruto revealed that county governments will receive Sh415 billion in the 2025 financial year—up from Sh387.4 billion last year.
“This is not just more money; it is a stronger foundation for counties to deliver, develop, and transform lives,” he declared, underscoring the significance of the increase as part of the newly signed County Allocation of Revenue Act, 2025.
The law distributes the funds to the 47 counties based on the constitutionally defined formula under Article 217.
This year marks the first implementation of the Fourth Revenue Division Formula approved by Parliament, which Dr Ruto said ensures fairer and more effective allocation. He emphasised that devolution remains at the heart of his administration’s development strategy, even amid a tight fiscal environment.
The President affirmed that all pending disbursements to counties for the past financial year have been cleared, giving devolved units the financial muscle, institutional support, and manpower needed to fulfil their mandates.
In the 12 years since the rollout of devolution, the National Government has transferred a total of Sh4 trillion to county governments. “Every corner of Kenya now has a functional county government closer to the people than ever before,” Dr Ruto said.
Marking a critical milestone, the President confirmed the full transfer of the 14 remaining devolved functions to counties, accompanied by aligned funding. He said this move removes long-standing ambiguity that previously hindered service delivery and triggered jurisdictional disputes.
Additionally, the National Government has gazetted the transfer of immovable assets, including land and buildings, to county governments, further empowering them to operate independently and effectively.
In a significant legal reform, Ruto signed the County Public Finance Laws (Amendment) Bill, 2023, establishing a County Assembly Fund in every county. He said the legislation reinforces the role of county assemblies while clarifying the responsibilities of both levels of government.
“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.
Highlighting a new economic development approach, Ruto revealed that the government is partnering with counties to build a high-impact, bankable value chain in each county.
The goal, he explained, is to convert local potential into jobs, income, and export opportunities.
However, the President Ruto warned that corruption continues to be the greatest threat to the success of devolution. He called on all institutions involved in the anti-corruption fight to intensify their efforts, stressing the need for collective commitment.
To enhance transparency and accountability, Ruto pointed to the digitisation of public services through the e-Citizen platform. The move has reduced resource wastage, sealed revenue leaks, and improved government collections.
“Our greatest challenge is not the inadequacy of resources, but how we utilise what we have,” he said.
Council of Governors Chair and Wajir Governor Ahmed Abdullahi lauded the government’s consistency in timely disbursements, noting that under Ruto’s leadership, every shilling due to counties was released by June 30.
“That has not always been the case. We don’t take it for granted,” Abdullahi said, urging county leaders to ensure equitable resource distribution within their jurisdictions.
He cited improved grassroots services especially in healthcare—as proof of devolution’s success.
He was flanked by Cabinet Secretaries(CSs) led by John Mbadi (National Treasury), Host Governor Gladys Wanga Wanga, Senate Speaker Amason Kingi, PSs led by Interior PS Dr Raymond Omollo, and a host of ODM and UDA leaders from Nyanza region.
