NAIROBI — President William Ruto has signed the Division of Revenue Bill 2025 into law, confirming the allocation of funds between Kenya’s national and county governments for the current financial year.
The signing, which took place at State House Nairobi, formally sets the stage for budget execution across both levels of government. This includes disbursement of funds to counties for health services, infrastructure, agriculture, and other devolved functions.
The bill allocates KSh2.6 trillion to the national government and KSh439 billion to county governments, in line with recommendations from the Commission on Revenue Allocation. The figures reflect Parliament’s approval during the budget cycle that concluded in June.
According to government sources, the new law will guide all Treasury disbursements and is expected to support timely planning and service delivery at the grassroots level.
“This law gives certainty to both national and county treasuries,” President Ruto said during the signing. “It ensures public services continue without disruption, and supports our long-term economic goals.”
The 2025 law also reinforces Kenya’s fiscal management framework by clearly outlining how national revenue will be shared. Experts say this helps reduce recurrent disputes between the national government and county administrations over delayed or inconsistent funding.
In the previous financial year, county governments flagged delays in disbursements, which hampered delivery of services in health, education, and water. The Treasury now faces pressure to meet timelines in releasing the new allocations.
The Bill is one of the key instruments that anchors the implementation of the 2025/26 national budget. It comes amid rising demands for increased county funding due to inflation and expanding local responsibilities.
The Controller of Budget is expected to publish guidelines within the month on the release schedule for the funds, while the National Treasury is finalizing the cash disbursement framework to guide the actual transfers.
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