STATE HOUSE, Nairobi – President William Ruto has signed the County Governments Additional Allocations Bill, 2025, which is set to increase funding to devolved units by an extra Sh70.6 billion in the 2025/2026 financial year.
This move allocates Sh9.98 billion from the National Government’s revenue share to clear salary arrears for doctors and Community Health Promoters (CHPS), as well as to complete County Aggregation and Industrial Parks.
The 47 counties will also receive an additional Sh 57. 7 billion from development partners to support numerous people- centred development initiatives aimed at stimulating socioeconomic growth and progress.
“This bill will strengthen devolution by ensuring counties have the financial support needed to deliver on their mandates,” said Dr Ruto during the signing ceremony on Friday 21st, flanked by the National Assembly Speaker Moses Wetangula, House Majority Leader Kimani Ichung’wah, and several legislators.
The other three vital bills he signed into law include the Capital Markets (Amendment) Bill, 2025; the Provisional Collection of Taxes and Duties (Repeal) Bill, 2025; and the Government-Owned Enterprises Bill, 2025.
To improve public financial management, the Capital Markets (Amendment) Act will modernise the regulatory framework for licensing capital markets intermediaries.
“It will aim to revitalise the sector, improve efficiency, and simplify doing business. The law also removes shareholding limits to attract greater investment in regulated institutions,” the act states.
Meanwhile, the 1929 statute that previously allowed Parliament to introduce taxes before full legislation has been repealed, removing the Provisional Collection of Taxes and Duties.
Dr Ruto noted that courts declared this provision unconstitutional in 2018, affirming that all taxes must be imposed through properly enacted laws.
In managing State corporations, the Government- Owned Enterprises Act mandates the appointment of independent board members via a transparent and competitive process, among other measures to enhance accountability.
“These four bills now form part of Kenya’ s legal framework and reinforce our commitment to sound governance, transparency, and effective service delivery,” President Ruto stated.
