President William Ruto has assented to the Division of Revenue (Amendment) Bill, 2024, guaranteeing counties Ksh387 billion as their equitable share for the 2024/25 financial year.
The Bill underwent significant revisions after the initial allocation of Ksh400 billion in the Finance Bill, 2024, was rejected. The revision lowered the allocation to Ksh380 billion before further negotiations restored Ksh7 billion, bringing the final amount to Ksh387 billion.
The Division of Revenue (Amendment) Bill adjusts the sharing of revenue raised nationally between the National and County Governments. The changes reflect a downward revision in projected revenue collection for the financial year, necessitating the adjustments.
Passed by the National Assembly on August 7, the Bill proceeded to the Senate, where amendments were introduced and approved on October 3. However, the National Assembly rejected the Senate’s amendments on October 16, prompting the formation of an 18-member mediation committee co-chaired by Kiharu MP Ndindi Nyoro and Mandera Senator Ali Roba.
The mediation committee reached an agreement on Tuesday, resolving the impasse. They agreed to increase county allocations by Ksh7 billion after examining key factors, including the rationale behind reducing allocations from last year’s funding by Ksh5 billion and the basis for a projected shortfall of Ksh346 billion in revenue. The committee also assessed historical revenue collection trends and county performance in generating local revenue.
The revised allocation represents 24.67% of the most recent audited national revenue, exceeding the constitutional minimum threshold of 15%. Meanwhile, Ksh2.2 trillion has been allocated to the National Government.
President Ruto signed the Bill into law during a ceremony at State House attended by senior government officials, including Deputy President Kithure Kindiki, National Assembly Speaker Moses Wetang’ula, Senate Speaker Amason Kingi, Prime Cabinet Secretary Musalia Mudavadi, and Treasury Cabinet Secretary John Mbadi.
Ruto also assented to the Rating Bill, 2022, and the Water (Amendment) Bill, 2024. The Rating Act establishes a standardized framework for property valuation and rating, providing clear guidelines for counties on assessing property values and imposing rates.
The Water (Amendment) Act introduces provisions for Public-Private Partnerships to support the financing and development of water works by National Government Agencies.
