By I.P. style.
President Ruto Signs Revenue Allocation and Key Development Bills into Law.
Ruto has alongside the act signed the Rating Bill, 2022, and the Water (Amendment) Bill, 2024 into law , marking a significant step toward strengthening fiscal decentralization and addressing critical challenges in development and governance.
The signing ceremony took place at State House, Nairobi.
Enhanced Funding for Counties.
The Division of Revenue (Amendment) Act, 2024, allocates KSh387 billion as the equitable share of revenue to county governments for the 2024/2025 financial year, representing 24.67% of the most recently audited revenues.
This exceeds the constitutional minimum of 15%, underscoring the government’s commitment to devolution.
Initially, counties were set to receive KSh400 billion, but the amount was revised to KSh380 billion following fiscal constraints.
A mediation process between the National Assembly and Senate resulted in the final allocation of KSh387 billion.
The Act also allocates KSh2.2 trillion to the National Government.
President Ruto highlighted that this funding would unlock stalled projects, clear pending bills, and ensure county workers receive timely salaries, all of which are vital to sustaining local economies and improving service delivery.
“This demonstrates our dedication to supporting counties in fulfilling their mandates to serve the people,” Ruto stated.
Addressing Stalled Projects and Pending Bills.
The funding boost is expected to revitalize numerous stalled projects across counties, such as the KOICA water project(Mt. Elgon-Mayanja-Kibabii Complex Water Project) in Bungoma and critical infrastructure in Trans Nzoia, Kakamega, and Vihiga.
These projects have faced delays due to funding gaps, negatively impacting residents’ access to essential services like water and healthcare.
Pending bills remain a pressing issue for counties, with Bungoma, Kakamega, and Vihiga owing KSh 3.52 billion, KSh 1.82 billion, and KSh 1.47 billion, respectively.
These debts have strained local businesses and disrupted county operations, including salary payments.
The Act emphasizes clearing these bills, ensuring contractors and suppliers are paid, stabilizing county finances, and fostering economic activity.
Strengthening Local Revenue Collection.
The National Rating Act, 2024, establishes a standardized framework for property valuation and taxation, providing counties with guidelines for assessing property rates.
This is expected to enhance local revenue collection and reduce over-reliance on national transfers.
President Ruto urged counties to adopt prudent financial management to maximize the impact of these reforms.
Advancing Water Infrastructure.
The Water (Amendment) Act, 2024, seeks to address water scarcity through public-private partnerships in financing and developing water infrastructure.
The President emphasized its potential to improve access to clean water, particularly in arid and semi-arid regions, enhancing the quality of life for millions of Kenyans.
A Call for Collaboration.
President Ruto commended the bipartisan efforts in Parliament that facilitated the passage of these laws.
He called for enhanced collaboration between national and county governments to ensure effective implementation of these funds and programs.
“This is a pivotal step in ensuring that devolution delivers on its promise of equitable development,” he said.
The new laws are anticipated to bolster economic growth, enhance public trust in governance, and ensure efficient delivery of services, reinforcing the government’s commitment to sustainable development.
Ends.
