The protracted debate over the Division of Revenue Bill highlighted sharp differences between the National Assembly and the Senate. While the National Assembly had approved Ksh 391 billion for counties, senators and the COG maintained that Ksh 400 billion was the minimum acceptable amount, citing constitutional requirements and historical allocations
President William Ruto has assented to the Division of Revenue (Amendment) Bill, 2024, officially allocating Ksh 387 billion to counties for the 2024/2025 financial year. This marks the resolution of a prolonged standoff between the National Assembly and the Senate over county funding. The finalized allocation represents 24.67% of the most recent audited revenue accounts and is Ksh 2 billion higher than the previous year’s allocation of Ksh 385 billion.
Initially, Ksh 400 billion was proposed for counties but was later revised to Ksh 380 billion after the withdrawal of the Finance Bill, 2024, amid public protests. After three weeks of intense negotiations, the two houses of Parliament agreed on the current allocation. This exceeds the constitutional minimum of 15% for county funding, despite the prevailing revenue shortfall.
Governors had strongly protested earlier proposals to cut allocations, warning that inadequate funding would cripple counties. The Council of Governors (COG) particularly opposed the National Assembly’s reduction of the County Equitable Share by Ksh 20 billion. The Senate’s initial push for Ksh 415 billion was ultimately scaled down, although the COG supported their stance, citing constitutional concerns over reduced funding.
Additional Bills Signed
President Ruto also signed into law the National Rating Act, 2024, and the Water (Amendment) Act, 2024.
The National Rating Act establishes standardized property valuation and rating systems for counties.
The Water (Amendment) Act enables public-private partnerships to finance water infrastructure development.
Protracted Disagreements
The protracted debate over the Division of Revenue Bill highlighted sharp differences between the National Assembly and the Senate. While the National Assembly had approved Ksh 391 billion for counties, senators and the COG maintained that Ksh 400 billion was the minimum acceptable amount, citing constitutional requirements and historical allocations.
The COG further criticized the use of figures in the Supplementary Appropriations Act, 2024, which they argued was unconstitutional since it was based on unpassed legislation. Delays in passing the County Allocation of Revenue Act have also left counties waiting for their equitable allocations, even months into the financial year.
Despite these challenges, the signing of the Division of Revenue (Amendment) Act ensures that counties can now proceed with their budgets and deliver services.
