President Ruto Assents to Key Bills, Allocating KSh 387 Billion to Counties
President William Ruto today assented to three crucial pieces of legislation: The Division of Revenue (Amendment) Bill, 2024, The Rating Bill, 2022, and The Water (Amendment) Bill, 2024, at State House, Nairobi. These laws are expected to significantly impact the country’s governance, fiscal policy, and water sector.
The Division of Revenue (Amendment) Act, 2024, allocates KSh 387 billion as the equitable share of revenue to the counties for the 2024/2025 financial year. This allocation surpasses the constitutional minimum requirement of 15 percent, as the counties will receive 24.67 percent of the most recent audited revenue accounts. Initially, KSh 400 billion was set aside for the equitable share, but a review following the withdrawal of the Finance Bill resulted in a downward adjustment to KSh 380 billion. However, after negotiations between the National Assembly and the Senate, an agreement was reached to allocate KSh 387 billion, providing counties with substantial fiscal support. Additionally, KSh 2.2 trillion has been allocated to the National Government.
“The passage of the Division of Revenue (Amendment) Act demonstrates our unwavering commitment to empowering counties to deliver essential services to our people,” said President Ruto. “This allocation will support the development of local infrastructure, health, education, and other critical sectors, ensuring that devolution continues to bring tangible benefits to every corner of Kenya.”
In line with ongoing efforts to improve the country’s governance and property taxation system, the President also signed into law the National Rating Act, 2024. This legislation introduces a standard framework for property valuation and rating, providing counties with clear guidelines on assessing property values and charging appropriate rates. The new law aims to improve revenue collection at the county level, offering a more efficient and transparent system for property owners.
“We are introducing a modernized and streamlined approach to property valuation and rating. This will enhance revenue generation for counties while ensuring fairness and accountability in the process,” President Ruto stated.
Furthermore, the Water (Amendment) Act, 2024, seeks to foster public-private partnerships in the development of water infrastructure by National Government agencies. This law will open avenues for collaboration with the private sector to fund the expansion and modernization of water systems, addressing the growing demand for reliable water supply across the country.
“We recognize that water is an essential resource for all Kenyans, and through this amendment, we are enabling innovative financing models to accelerate the development of water infrastructure,” President Ruto affirmed.
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