By IP reporter
NAIROBI,KENYA.
National Assembly Speaker Dr. Moses Wetang’ula has hailed the signing into law of the Division of Revenue Bill 2025, describing it as a fundamental pillar for Kenya’s fiscal stability, national governance, and the success of devolution.
Speaking at State House Nairobi where President William Ruto assented to the Bill, Wetang’ula said the legislation ensures that both levels of government—national and county—have the legal and financial grounding to operate effectively and deliver services to citizens.
“This law is not just a budgetary instrument, it is the legal architecture that anchors our fiscal framework and guarantees the delivery of government functions as envisaged in the Constitution,” Wetang’ula said.
Law Unlocks Ksh. 2.7 Trillion for National and County Governments.
Under the new law, the National Government has been allocated Ksh. 2.3 trillion, while the 47 County Governments will share Ksh. 415 billion in equitable revenue.
This allocation will guide spending priorities for the 2025/2026 financial year.
Wetang’ula noted that the timely passage and assent of the Bill reflects a maturing democracy where institutions work collaboratively for the national interest.
“The Division of Revenue Act provides predictability and stability in planning, allowing both levels of government to align their priorities with national development goals,” he added.
What the Division of Revenue Bill Means
The Division of Revenue Bill, passed annually, is a constitutional requirement under Article 218 of the Kenyan Constitution.
It sets out the proportion of nationally raised revenue that will be shared between the two levels of government.
Once enacted, it forms the basis upon which:
The National Treasury can release funds to the counties;
The County Allocation of Revenue Bill is drafted, allocating specific amounts to each county;
Both the National and County Governments prepare their respective budgets for parliamentary approval.
Without this law in place, counties cannot initiate or execute their budget plans, and essential services—such as healthcare, water, and agriculture—would be delayed or halted.
Speaker Urges Counties to Demonstrate Financial Prudence.
Dr. Wetang’ula also issued a strong call to County Governments to exercise transparency and accountability in the use of public resources.
“This Ksh. 415 billion is not just a number—it is a mandate to serve the people
Counties must ensure that the resources are used to uplift lives and meet core development goals,” he said.
The Speaker emphasized the need for robust oversight mechanisms by County Assemblies and national audit institutions to ensure value for money and curb mismanagement.
Partnership Between Arms of Government
Wetang’ula praised Parliament, the Executive, and the Commission on Revenue Allocation (CRA) for working in harmony to ensure the Division of Revenue Bill was passed without delay.
“This reflects the constitutional spirit of consultation, cooperation, and mutual respect among state organs in service to the Republic of Kenya,” he said.
The Bill’s signing sets the stage for the National Treasury to begin disbursing funds in line with the approved 2025/2026 budget, ensuring that development projects and service delivery continue without interruption.
Ends.
